Friday, August 24, 2012

Obama Care - Still Constitutional and Still A Disaster: Part 3 - Taxes, Taxes and More Taxes

We have spent the past few days reviewing the fact that while Obama Care is Constitutional, it is still a disaster along so many dimensions:
  1. It never addressed the real root causes of our escalating high health care costs including America's bad eating habits, bad smoking habits, bad exercise habits and how government actions and subsidy programs encourage these bad habits.
  2. It never addressed the aging of America nor the costs and increases in aging diseases that are likely to occur.
  3. It never addressed the issue of medical tort reform, an avenue that has been highly successful at the state level.
  4. It never broke down the barriers of insurance company competition across state lines that would increase competition and decrease costs.
  5. It never "followed the money" to find out and understand where all of these escalating health care costs go and what parties benefit and profit from these increased costs.
  6. It never anticipated the obvious fact that companies would turn full time employees into part time employees because these companies could not afford the increased Obama Care costs that would be imposed on them.
  7. It never anticipated that companies would terminate their employee and retiree health care plans because it would be cheaper not to offer them and pay a small fine under Obama Care than to continue with them in place.
  8. It never anticipated or planned for the fact that the country would become critically short of doctors once more people had access to health care insurance.
  9. It never understood that robbing Medicare of hundreds of billions of dollars to pay Obama Care's costs would endanger existing health care support and services for existing and future elderly Americans and yet not solve the escalating health care cost problem in this country, it only moves the cost problem  around within the Federal bureaucracy.
  10. It never understood that by not solving the underlying root causes, hundreds of billions of dollars will be added to the national debt.
  11. It never understood that the penalty for not obeying the Obama Care mandate to purchase insurance was mostly an unenforceable infraction, rendering the individual mandate mostly toothless from an enforcement perspective.
  12. It never understood that today the IRS is failing miserably to collect the taxes owed to the Federal government today and will likely be unable to effectively collect and enforce the additional 47 taxation tenets introduced under Obama Care.
  13. It never understood that the half a billion dollars Obama is giving to the IRS to collect the enforcement mandate under Obama Care would be far better spent tracking down and prosecuting the criminal elements that bilk Medicare and Medicaid out of over $100 billion a year.
We have covered MANY other reasons why Obama Care is a bad idea but let's stop here with lucky thirteen. These thirteen reasons do not include the Obama Care taxes that will hit many, many Americans, not just the rich:

- Obama Care applies a new 2.3% tax on the sales of medical devices. These devices range from MRI and X-ray machines to syringes and stethoscopes to prosthetics, artificial arms and limbs. As with any tax, disposable income is reduced and market demand and economic growth are dampened.
According to research by the Heritage Foundation, layoffs of workers have already occurred at some manufacturers that have anticipated the tax’s impact on their medical devices businesses. Most notably Stryker Corporation of Kalamazoo, Michigan, which has already announced it will lay off about 1,000 workers—about 5 percent of its workforce—because of the tax. Also, picture the fact that many of our brave soldiers who lost limbs in Iraq and Afghanistan will be hit with this tax.

- Obama Care imposes a new Medicare tax increase on those Americans earning over $200,000 a year and applies that increase and the base tax not only to wages but all forms of income. This will also take disposable income out of the marketplace, suppressing economic growth while not solving the base health care cost issue in the country. The danger with this step is that when Obama Care starts to run a deficit, which is it highly likely to do, you can be sure that the $200,000 threshold will be lowered to feed the beast, eventually affecting not just the "rich."

- Although not a government tax, Papa John's Pizza Chairman, John Schnatter, told CBS News on August 8, 2012 that Obama Care will result in Papa John's having to raise the price of its pizzas to cover the costs imposed on it by Obama Care. Now, if you assume that Papa John's is not unique in that it needs to raise prices to cover the cost of Obama Care taxes, we could expect to pay more for our movie tickets, our supermarket forays, our auto purchases, etc. as other industries adjust their prices to their higher Obama Care tax costs.

- If the image of veterans paying more for their prosthetic devices is not bad enough, consider the impact that Obama Care will have on Flexible Spending Accounts (FSAs). FSAs can and have often been used by families with special needs students to help pay the special education costs for those special needs kids. Obama Care imposes cap on FSAs of $2500 vs. the unlimited ceiling that exists today. The imposition of a cap will place severe financial strain on the education costs of these special needs kids regardless of how "rich" their parents are. 

These are just a handful of ways that Obama Care taxes will impact many, many Americans' lives. Rich or not so rich, we are all likely to pay more in taxes for a solution that will never work and that is the biggest sin and transgression of all, Obama Care will not work.

An old saying goes as follows: "Just because you can, does not mean you should." Just because Obama Care could get passed and is Constitutional does not mean it should have been passed. The past three days are evidence of the wisdom of this saying.

Which is not to be confused with the recent wise words of another famous American, which pretty much summarizes in a few sentences what took us three days to cover:

Let me get this straight . . .We’re going to be “gifted” with a health care plan we are forced to purchase and fined if we don’t! Which purportedly covers at least ten million more people without adding a single new doctor, but provides for 16,000 new IRS agents, written by a committee whose chairman says he doesn’t understand it, passed by a Congress that didn’t read it but exempted themselves from it, [personal attack phrase removed]with funding administered by a treasury chief who didn’t pay his taxes, for which we’ll be taxed for four years before any benefits take effect, by a government which has already bankrupted Social Security and Medicare, all to be overseen by a surgeon general who is obese , and financed by a country that’s broke!!!!!

‘What the hell could possibly go wrong?’

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Please visit the following sites for freedom:

http://www.cato.org/
http://www.robertringer.com/
http://realpolichick.blogspot.com/
http://www.flipcongress2010.com/
http://www.reason.com/
http://www.repealamendment/

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