Senator Baucus

When the Senate Finance Committee votes on President Obama’s health care plan, it won’t even have the text of the bill in existence.  It will just be voting on a summary of what the bill will supposedly contain. Senate Democrats voted down Republican proposals that the bill’s text be made available to Senators and the public 72 hours before the vote.

And the bill itself is likely to be changed by Senate leaders at the last minute, right before the Senate as a whole votes on it, “to add the public option provision they have long favored,” but removed from the Committee version of the bill to appease moderates.

The desire of Obamacare’s supporters to avoid any scrutiny or review of their bill is understandable, because its provisions have already been tried, and failed, at the state level.  As Peter Suderman of Reason (and formerly of CEI) notes in today’s Wall Street Journal, “The major provisions of ObamaCare already have been tried.  They’ve led to increased costs and reduced access to care” for people who once had private insurance.  The states that adopted these “reforms” have the most expensive and unaffordable health insurance.

Despite these state-level failures, President Barack Obama and congressional Democrats are pushing forward a slate of similar reforms. Unlike most high-school science fair participants, they seem unaware that the point of doing experiments is to identify what actually works. Instead, they’ve identified what doesn’t—and decided to do it again.

Obama is relying on $2 trillion in imaginary savings to pay for his health care plan.  Even Democratic governors have criticized its huge cost, much of which would be passed on to state taxpayers through higher state-government Medicaid costs. One of Obama’s economic advisers said his health-care plan would lead to “crippling deficits” and “higher taxes.”

It also breaks Obama’s campaign promise not to raise taxes on the middle class.  Americans for Tax Reform summarizes the tax increases in the trimmed-down version of Obamacare revealed by its principal drafter, Senator Max Baucus (D-Mont.). Here are just a few of those tax increases: an individual mandate tax of $900 per individual or $3800 per family (if you don’t have health insurance); an employer mandate tax of $400 per employee if health coverage is not offered; an “excise tax on high-cost health plans”; a “medicine cabinet tax”; capping flexible-spending accounts (FSA’s); abolishing most health savings accounts; and increasing tax penalties for HSAs.

This is part of a long line of broken promises, such as Obama’s pledge to enact a “net spending cut,” which he broke with huge budgets that will explode the national debt through $9.3 trillion in massively increased deficit spending.

Fact-checkers, including the Associated Press and Washington Post, say Obama has made many false claims about his health-care plan. For example, Obama claims that nothing in his health-care “plan will require you or your employer to change the coverage or the doctor you have.” But that’s not true of the House and Senate versions the plan. AP noted that, “the Congressional Budget Office analyzed the health care bill written by House Democrats and said that by 2016 some 3 million people who now have employer-based care would lose it because their employers would decide to stop offering it.”

ObamaCare has other dubious provisions, like its racial preferences, which drew criticism from the U.S. Commission on Civil Rights.

The middle class is facing big tax increases thanks to Obama and liberal congressional leaders.

Even the trimmed-down version of Obama’s health-care plan recently announced by a ranking Senator contains lots of tax increases for the middle class (see below).

And the costly cap-and-trade energy legislation passed by the House and supported by Obama would lead to big tax increases in the name of fighting global warming, Administration officials privately have conceded, even though they publicly claim otherwise.  “Officials at the Treasury Department think cap-and-trade legislation would cost taxpayers hundreds of billion in taxes, according to internal documents circulated within the agency and provided to The Washington Times” by CEI.  It would also result in “loss of steel, paper, aluminum, chemical, and cement manufacturing jobs,” as jobs migrate overseas to countries which have fewer environmental protections than the U.S. does.

Obama earlier admitted that “under my plan of a cap and trade system, electricity rates would necessarily skyrocket.” As Obama admitted, that cost would be directly passed “on to consumers” — just the way Herbert Hoover’s excise tax increases were in 1932, aggravating the Great Depression. Although the tax’s supporters claim it will cut greenhouse gas emissions, it may perversely increase them and also result in dirtier air, as well as harming forests and water supplies.

Americans for Tax Reform summarizes the tax increases in the trimmed-down version of ObamaCare revealed by its principal drafter, Senator Max Baucus (D-Montana).  Here is a partial list:

· Individual Mandate Tax.  If you don’t sign up for health insurance, you will have to pay a tax in the following range:

Single

Family

100-300% FPL

$750

$1500

300+% FPL

$900

$3800

· Employer Mandate Tax. $400 per employee if health coverage is not offered.  Note: this is a huge incentive to drop coverage, as $400 is much less than the average plan cost of $11,000 for families or $5000 for singles (Source: AHIP)

· Excise Tax on High-Cost Health Plans.  New 35% excise tax on health insurance plans to the extent they exceed $21000 in cost ($8000 single)

· Medicine Cabinet Tax.  Americans would no longer be able to purchase over-the-counter medicines with their FSA, HSA, or HRA

· Eliminate tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D

· Report Employer Health Spending on W-2. This is clearly a setup for the easy individual taxation of employer-provided health insurance down the road.

· Cap Flex-Spending Account (FSA) Contributions at $2000. Currently unlimited.

· Backdoor Death of HSAs. By requiring that all plans (besides the few that are grandfathered) provided first-dollar coverage for most services, there would be no HSA-qualifying plans available from the Massachusetts-like exchanges