Showing posts with label health reform. Show all posts
Showing posts with label health reform. Show all posts

Monday, April 26, 2010

'To ask the question is to answer it'

At National Review, Rich Lowry is grumpy:
Over at PowerLine, John Hinderaker makes a great catch: CNN describes the Arizona immigration law as "polarizing." John asks why the health-care bill was never described that way, even though it too brought protestors into the streets and was actually, in contrast to the Arizona bill, opposed by most people? To ask the question is to answer it.
I sent Mr. Lowry a note:

A Google search for "health care bill polarizing" gets 476,000 results.

A GoogleNews search for the same term gets more than 600 results.

You say that "to ask the question is to answer it," but trying to answer it might've provided you a different result.

Monday, April 12, 2010

Fun with math: Obama's health care 'tax increase' on the middle class

Daniel Foster points to this Hill story, showing that Obama's health reform bill will actually sock the middle class with tax increases. The bolded parts are Foster's emphases:

Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — because of healthcare reform, according to the Joint Committee on Taxation, Congress' official scorekeeper for legislation.

The new law raises $15.2 billion over 10 years by limiting the medical expense deduction, a provision widely used by taxpayers who either have a serious illness or are older.

Taxpayers can currently deduct medical expenses in excess of 7.5 percent of their adjusted gross income. Starting in 2013, most taxpayers will only be allowed to deducted expenses greater than 10 percent of AGI. Older taxpayers are hit by this threshold increase in 2017.

Once the law is fully implemented in 2019, the JCT estimates the deduction limitation will affect 14.8 million taxpayers — 14.7 million of them will earn less than $200,000 a year. These taxpayers are single and joint filers, as well as heads of households.

"Loss of this deduction will mean higher taxes for 14.7 million individuals and families making under $200,000 a year in 2019," Sen. Chuck Grassley (R-Iowa) told The Hill. "The new subsidy for health insurance would not be available to offset this tax increase for most of these households."

A little more math here is helpful, though: 14.7 million taxpayers will lose the deduction; they'll get hit with a collective $3.9 billion in new taxes in 2019. That means each taxpayer (and taxpaying household) will see an average tax increase of ... $26.

Clearly, socialism is bringing confiscatory tax rates to America.

Funny, though, Foster's excerpt skipped The Hill's line right after the Grassley quote:

The healthcare law contains tax breaks for individuals purchasing health insurance, but the breaks phase out for those making $88,000 a year.

So: The average tax increase of $26 a year will apply to families making between $88,000 and $200,000 a year. Even if you're on the low end of that scale, that average $26 increase will consume roughly three-tenths of one percent of your income!

I suppose that technically, this violates Obama's promise not to raise taxes of people making less than $250,000 a year. In reality, I'm not sure they'll notice it all that much. Unless organizations like The Hill continue to force readers to do the math to put these things in context -- and let Republicans needlessly scare the middle class.

UPDATE: The back of the envelope is no match for a calculator. I failed to carry a "zero" somewhere: Actual numbers are a $265 a year increase for those 14.7 million people. That's a bigger and more-noticeable number, to be sure. Still three-tenths of one percent of the $88,000-a-year income though. (How the hell did I make that mistake?)

Tuesday, April 6, 2010

Economic liberty and actual liberty

Some of my more thoughtful conservative friends have criticized President Obama's bigger initiatives -- like the health reform law -- from a "first principles" argument that economic liberty is the foundation of, well, liberty liberty. Any governmental act that interferes with the rights of individuals to their property or profit is a reduction of liberty and thus potentially a step down the slippery slope to tyranny. I think it's an insightful argument, but I also think it's got limits.

And I think those limits might be demonstrated by the Heritage Foundation's 2010 Index of Economic Freedom. What's notable is that the two "countries" ranked highest on the index -- Hong Kong and Singapore -- might be great places to make cash, but they're not what most Americans would think of as substantially "free." (The United States ranks ninth.) Hong Kong might be listed as a separate "country" for the purposes of the index, but it's ruled by Chinese Communists; it might be more free than the mainland, but there are still rather significant concerns about freedom of expression. And Singapore? It's the authoritarian government that gave us caning and ranks 133rd in the World Press Freedom Index.

Heritage's index, obviously, doesn't take those things into account. Instead it ranks each country on a list of 10 criteria, including property rights, business freedom, government spending and "labor freedom." Weirdly, Canada -- with its big socialistic health care system -- ranks ahead of the United States.

I don't think my thoughtful conservative friends would assert that countries with libertarian policies only for corporations and not for citizens are truly free. Nor would I want to suggest that the ability to express yourself freely is the only criterion for liberty; economic liberty is an important component. But it appears that low taxes and free trade are no guarantee of freedom; I suspect it probably follows that a more-regulated health system isn't the end of our Republic.

Tuesday, March 30, 2010

For all you Obama-hating deficit hawks out there

Via Paul Krugman, a graphical representation of how the two Bush tax cuts, the Iraq War and the new health reform law impact the federal budget:

Stuff like this is why it's so hard for me not to think of the Tea Partiers as, essentially, sore losers.

Sunday, March 21, 2010

Newt Gingrich, health reform, the Civil Rights movement and partisan rancor

I thought this was interesting framing by Newt Gingrich in this morning's Washington Post:

But former Republican House speaker Newt Gingrich said Obama and the Democrats will regret their decision to push for comprehensive reform. Calling the bill "the most radical social experiment . . . in modern times," Gingrich said: "They will have destroyed their party much as Lyndon Johnson shattered the Democratic Party for 40 years" with the enactment of civil rights legislation in the 1960s.
As writer Dan Balz notes in the next paragraph, "no one doubts that Johnson was right to push for those civil rights measures." No one does now of course -- at least not openly, if they wish to participate in mainstream politics -- but the reason the civil rights legislation was so devastating for the Democratic Party over time was that there were plenty of people who did think it was wrong for Johnson to push for those measures.

What does this have to do with the health reform debate? 

There's a lot about Republican governance the last 40 years that I've thought annoying at best and damaging to the country at worst. And yet the worst of it has never been so bad that it would justify hopping in a time machine and convincing LBJ not to pass civil rights legislation in order to keep the South in the Democratic column. The tradeoff -- 40 years in the political wilderness in exchange for a legal regime that protected and enforced the rights of African Americans for the first time in our history -- was worth it, frankly.

And if Gingrich's prediction comes true -- I'm not at all sure it will -- I suspect it will again be worth it. Millions of Americans who can't afford health insurance will finally be covered; millions of others who have paid for coverage will actually get to use that coverage instead of seeing it revoked when they get sick. A legal regime that enables all Americans to access and use health care is, frankly, the least that can happen in the richest civilization this planet has ever seen.

Republicans might be able to tap into anger among some voters to ride back into power. But it's unlikely they'll have the stones to repeal health reform -- last seen in power, of course, they were expanding the Medicare entitlement that conservatives had vociferously opposed a generation earlier. So they can have the presidency for the next 40 years, if they want. Power is important, but so is the end to which it is used. Democrats might be sacrificing their power now, but for a worthy cause. I'm OK with that.