We have yet to be told how much a health care initiative will cost us. Regardless of how much the plan costs, Obama promised no new taxes and any plan would be deficit neutral. Does anyone believe that he will keep that promise?
While several bills are under consideration the sources of revenue seem to be fairly constant. There are several sources of revenue being discussed.
INSURANCE MANDATE
All Americans will be required to purchase health care. Fail to purchase health care and you will be fined. A penalty which translates to an outlay of funds. A tax?
EMPLOYER MANDATE
All employers will be required to supply health care insurance for their workers. If they fail to do so the penalty they will pay will fluctuate from 2 1/2% to 8% depending on the size of the company.
The downside is to the employee. Small employers do not have access to "premium" coverage or cost effective rates. A small company may have 100 employees to enroll.
Larger groups with thousands of employees get better rates based on the volume of individuals. A smaller employer will be paying higher rates and consequently the employee's share will be higher.
The smaller employer who is burdened by supplying health care may cut their workforce to offset costs. That will increase unemployment.
To supplement the cost the employer may withhold raises from workers. If an employee does not get a raise they cannot keep up with the cost of living. If you add the expense of paying for health care you will reduce their standard of living. The impact of mandatory health care will adversely impact those families who are barely keeping their heads above water now.
The small employer may be forced to raise the cost of their product. Raising the cost may cause the employer to be non-competitive in the market place. A non-competitive company is a company destined to go out of business.
Who will bear the brunt of this mandate? The worker and the general public. But it is not a tax.
MILLIONAIRE SURTAX
1% of the population falls into this category. They are viewed as a viable source of revenue. Another example of the Robin Hood theory. Take from the rich and give to the poor.
TAX ON CADILLAC HEALTH PLANS
How much tax will you pay? This is definitely a tax. What happened to no new taxes?
The plans identified range in annual cost from $8,000 for an individual to $21.000.00 for a family.
You don't have to be a highly paid employee to have a plan that qualifies as Cadillac. Employers with smaller groups will pay more for their plans. So employees of smaller companies could actually fall into this group by virtue of the cost of their plan - not the benefits supplied by the plan.
As a point of reference my husband works for a company owned by Warren Buffet. The cost of our plan for two people exceeds $7,000.00 per year. Now consider the buying power Warren Buffet has as compared to an employer with 100 employees.
Our Plan is not a Cadillac plan. It's a standard BCBS PPO. We still have an annual deductible, copay's and cover 20% of the charges until the deductible is met.
Imagine how much health care will cost an employee whose employer is unable to negotiate rates like Warren Buffet. It could easily exceed the $7,000.00 we pay and fall into the Cadillac definition by virtue of its cost.
The employee will be dinged for the cost of the plan and the excise tax. If they fail to enroll they will be fined. But this is not a tax right?
UNINSURED TO BE COVERED BY MEDICAID
One proposal includes switching over the uninsured to Medicaid. The states have to absorb the cost not the Federal Government.
Expect the states will be increasing taxes to cover the shortfall. If they do not tax their residents they will have to cut critical funding to roads and schools.
This is not a tax from the federal government but as a result of the federal government.
TAX DEVICE MANUFACTURERS AND PHARMACEUTICAL COMPANIES.
If a manufacturer pays more tax to produce a product the end user will bear that cost.
It's coming out of the pocket of the American tax payer so the cost of that tax is actually paid by us. Isn't that a tax increase? No just a back door approach amounting to the same thing.
MEDICARE IS SLATED TO CONTRIBUTE 500 BILLION
We have already seen the fraud that exists in Medicare. A wheel chair costs $4,000 through Medicare but can be bought on the Internet for $1,000.00. Diabetic supplies cost $82.00 through Medicare verses $47.00 on the Internet.
The American public has not created the fraud Mr. Obama. Congress has failed to pass legislation that would allow a bidding process. The government has created the fraud.
The government runs Medicare. It's being hosed under your administration. CLEAN UP YOUR HOUSE FIRST!
Don't try to shave more benefits from the American public because elected officials are funded by the lobbyists.
Why should the people who need Medicare benefits have to sacrifice their lives so Washington can live fat and happy?
Whether the cost comes out of your pocket via increased federal taxes or a back door approach - the end result is that your wallet will be thinner.
This is a public post.
These are the rules of conduct. Anyone who wishes to comment regardless of ideology are welcome to do so. Posters who leave comments that are personal attacks against the blogger or other commentators will be deleted. Posters who include an accusation of racism either against the commentators or the content of the post will be deleted. There will be no tolerance for racism of any kind.
_________________________________
Comments(8)