Saturday, March 20, 2010

It's not "sausage"

Pundits refer to this health care madness as "making sausage" because the bill includes so many special earmarks, new rules, and backroom deals; many of which have nothing to do with health care. Believe it or not the final bill even includes a government takeover of the Student College Loan Program...health care?

Even though a majority of Americans are in favor of health care reform, that same majority are against this bill as it is written. It appears the bill could become law this weekend and possibly with a margin of just one Democratic vote changing one fifth of the economy of this country; and it will give government more control over our lives than any time in history.

Because of the financial "trickery" being used to present this bill to the American public, I don't call this sausage, I call it a sweet cookie with a poison pill inside. Many of the good aspects of this bill are "front loaded" while the negative aspects are delayed until after Obama's first term as president.

1/The democrats are "giddy" because the CBO reports that the bill will reduce the deficit over one hundred billion dollars the first ten years. They do not tell us that this deficit projection includes ten years of taxes but only six years of benefits since most of the plan costs do not start until 2014 - part of the "sweet cookie".

2/Mandatory coverage for pre-existing conditions begins immediately for children, and parents will be able to carry "children" on their own policy until those children are 26 years old. Both sides are in favor of this part of the bill - part of the sweet cookie.

3/Income taxes on individuals earning over $200,000 or couples earning over $250,000 go to 44% under this bill; not including state or local income taxes. These are "Jimmy Carter" tax rates and if you were alive during that period you can remember what happened to the economy. Since most of the beneficiaries of this new entitlement are lower income people or people who rely on the government to take care of them (and are probably Democratic votes), this is also part of the sweet cookie. But since most of these high income people are small business owners who create jobs, the future effect on the economy could be disastrous.

There are many other provisions in this bill that are part of the sweet cookie but in 2014 the "poison pill" will be reached as the costs start up and some economists predict the national debt will then explode. If you add that to our existing debt this country could be heading for bankruptcy or massive taxes on EVERYONE, not just the "fat cats". Then we will get a close up look at what out-of-control entitlements can do to an economy. It is easy to "sell" another entitlement - after all, everyone wants something for free. It is another thing to pay for those entitlements.

There is an old adage proven throughout history; "When people who are taking out of a society outnumber those that are putting in, that society collapses". This new Health Care entitlement along with our bankrupt Medicare and Social Security programs could be taking us to the edge of that cliff.

No comments: