By: Brian Sikma
Senator Barak Hussein Obama has now announced his health care plan for insuring 45 million uninsured Americans. The goal of the plan is to provide more affordable coverage to those who may be in serious need health insurance. While adults are not required to participate in the plan, every uninsured child in America would be required to take part in the program.
Basically, the plan would create a new government program (a hallmark solution from Democrats), increase the amount of regulations on current insurance providers, require businesses to offer coverage to employees or pay a set percentage of revenue into a federal program for covering the uninsured, and create a federally controlled market place (“controlled market place”, isn’t that an oxymoron?) that would allow the different health care coverage providers to compete with each other for customers. The main theme of the plan is controlling the cost of health care. There are several ways to control costs in a health insurance program; you can limit the amount of money that hospitals, doctors, and insurance companies can charge for their services, or you can have government pick up the tab on expensive treatments. The Obama plan does both.
Of course, if government is going to pay for some of the more expensive facets of the plan, then the place were the government gets its money from is going to have to cough up some extra revenue. Since government cannot make money like a profit-making enterprise, it gets its money from you, the taxpayer. Mr. Obama argues that his plan can be paid for by allowing tax cuts for those making over $250,000 or more a year to expire. The estimated $50 to $65 billion cost of the plan will be paid for by these tax increases.
The problem with this logic is that it assumes that income earners in the $250,000 a year and or higher bracket will continue to earn money at the same rate that they did under the tax cuts. If we start penalizing people for making a certain amount of money, doesn’t it follow that those individuals will seek to minimize their taxes by possibly making less money? If you’re going to see you hard earned work taken away by the government, you have less of an incentive to work as hard. The end result will be people earning less money and thereby contributing less in revenue. If the health coverage program is to continue to operate after this decline in revenues, the government will have to either go in debt some more, or raise tax rates on all income brackets.
A selling point of the Obama health plan is Mr. Obama’s assertion that the plan will save the average family $2,500 a year. This sounds like a good deal until you realize that Mr. Obama and his party voted for a budget resolution that will raise taxes on the American people by $900 billion dollars over the next 5 years. Most people, including politicians, can’t comprehend such a high number. In terms that we can understand, the Heritage Foundation estimated that this tax increase will average out to $2,641 per family per year.
In sum, Mr. Obama has proposed a plan to save America’s families $2,500 a year, but yet he and his party have supported a tax increase that will raise taxes by $2,641 a year. Assuming the Obama plan works as advertised, you get to lose approximately $141 a year. This cost does not cover the related costs of going with a national health care plan. American health care and American families do not need more government intervention in their economic affairs.