senate majority leader harry reid

Reid Health Care Bill Adds New Tax Increases, Costs Twice As Much As Promised

by Hans Bader on November 19, 2009 · 3 comments

in Health and Illness, Healthcare, Insurance, Legal, Personal Liberty, Politics as Usual, Precaution & Risk, Regulation, Sanctimony

The health care “reform” bill drafted by Senate Majority Leader Harry Reid adds new tax increases, and costs twice as much as its promised $849 billion price tag.

The tax increases (in billions) include:

1. 40% excise tax on health coverage in excess of $8,500 (individuals) / $23,000 (families). . .
2. Additional 0.5% Medicare (Hospital Insurance) tax on wages in excess of $200,000 ($250,000 for joint filers) – begins in 2013 – $54 B tax increase
3. Impose annual fee on manufacturers and importers of branded drugs – begins in 2010 – $22 B tax increase
4. Impose annual fee on manufacturers and importers of certain medical devices – begins in 2010 – $19 B tax increase
5. Impose annual fee on manufacturers and importers of certain medical devices – begins in 2010 – $60 B tax increase
6. Cut in half (to $500K) the amount of an executive’s compensation that a health plan can deduct from its corporate income taxes – begins in 2013 . . .
7. Impose 5% excise tax on cosmetic surgery and similar procedures – begins for surgery in 2010 – $6 B tax increase!

The bill will cost far more than projected. The bill uses “accounting tricks” to keep the short-term costs down, by temporarily raising taxes before spending explodes. But in every year thereafter, it will increase the deficit, notes an analysis from the Congressional Budget Office. “In its true first decade (2014 to 2023), CBO projects the bill’s costs to be $1.8 trillion — double the price Reid is advertising.”

The Dean of Harvard Medical School, Jeffrey S. Flier, gave the health care bill a “failing grade” in an analysis published yesterday in The Wall Street Journal, saying that it would drive up costs and stifle medical innovation.

The health care “reform” bills “would reduce senior care,” increase “medical costs,”  and “jeopardize access to care for millions,” reported experts at the federal Centers for Medicare and Medicaid Services.    They will explode state and federal deficits, and contain payoffs for trial lawyers and racial preferences.

ObamaCare spends money on frills like “cultural competency,” while cutting spending on crucial things like anesthesia.

Fact-checkers say Obama is lying about health care.  In a speech, Obama claimed that Medicare is “unsustainable” and “running out of money,” then contradicted himself by claiming that “Medicare is a government program that works really well,” making it a model for national health care.

A CNN commentary noted that Obama’s plan would take away “5 freedoms,” such as the freedom to choose your doctors, keep your existing plan if you like it, and choose what’s in your plan.

Should the Anti-Stimulus Package be tan or beige?

by Wayne Crews on February 7, 2009 · 7 comments

in Bailout Watch, Deregulate to Stimulate, Personal Liberty, Politics as Usual, Regulation, Stimulus to Nowhere

President Obama more than once last week called it “inexcusable” for Congress to get “bogged down in distraction, delay or politics as usual” over the anti-stimulus legislation. Actually, there never was such a bog-down, since the bill already passed the House by the Democratic majority, and he never needed much Republican support to make a package of substantial magnitude happen in the Senate. Obama is seeking a sheen of bipartisanship, but if he’s convinced it’s right and he occupies the moral high-ground, it’s not entirely clear why he would talk about an imaginary bog-down of what’s become a “faith-based initiative” that no one can or will stop. Obama’s right–he did win in November, as he taunted detractors last week, and nobody can stop him. It’s just curious that he feels the need to seek rivals’ approval of a highly destructive measure like this when it’s a train that can’t (or won’t) be stopped anyway.

I remember a comedy called “Moon Over Parador;” you could vote for the dictator…but only the red-tinted picture of him or the blue-tinted one. That’s how I felt watching the “debate” this past week over the size of the package:  The House passed a package of $819 billion; the Senate, after hyped-up wrangling, appears set to vote on one of $780 billion late Monday afternoon. Rounding them, they’re still both $800 billion.

The bottom line is we’re getting a trillion-dollar stimulus once interest is taken into account, and the past week’s battle has been about shaving off some cost, but not the underlying premise or the fundamental merit of political stimulus.

Senate Majority leader Harry Reid said, “We are passing a bold and responsible plan that will help our economy get back on its feet, put people to work and put more money in their pockets.”

This kind of statement embodies the essence of the policy crisis our country faces. It’s hardly “bold and responsible” to redistribute other people’s wealth: it’s the easiest thing in the world to do when you’re a career politician; it’s dismally less “bold” when that wealth hasn’t even been created yet and must be borrowed from our descendants who have no recourse against you now. So the package is actually reckless and irresponsible beyond Thunderdome. Like much government spending, whether routine or that squandered during past recessions, it’s politically motivated and unconnected to economic recovery.

And for Reid’s comment to “put more money in…pockets”; Apart from what he’s taking from our descendents, that’s where the money is now. To implement the anti-stimulus, he has to take it out of pockets of some to give it to others. Behold, leadership during a crisis. The many alternative “liberate to stimulate” ideas we and others have been proposing for months are ignored by the political class (only as they can get away with it!), because they don’t increase the power of politicians. Alas, politicians are now salivating at the prospect of the greatest one-time lurch in the size of the State they’ve ever known. This is a stimulus for politicians and the State, not the economy.