James Pethokoukis
Politics and policy from inside Washington
9 reasons Pelosi’s healthcare surtax is disastrous
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So what explains the crazy, cockeyed optimism of House Democrats? Maybe they still believe Team Obama’s rosy-scenario forecast that shows the stimulus package a) keeping unemployment under 8 percent this year and b) launching an economic boom next year and beyond. For some reason, though, they think the battered U.S. economy is so strong that politicians can pile tax upon tax on it with no fear of further harm. Less than three weeks after passing a costly cap-and-trade carbon emission plan, Pelosi & Co. have giddily unveiled a $1.2 trillion healthcare plan partially funded by a $544 billion surtax on the work and investment income of wealthier Americans, including small business owners.
[See why Obama's economic gamble is failing.]
The ten-year proposal calls for a 1 percent surtax on adjusted gross income — including capital gains — between $350,000 and $500,000; a 1.5% surtax on income between $500,000 and $1 million; and a 5.4% surtax on income exceeding $1 million. (Interestingly, the House fact sheet on the surtax forgets to mention the highest tax rate. Hey, they were in a rush.) How bad an idea is this? Let me count the ways:
It’s not the first Obama tax hike. This tax would be in addition to the $1 trillion in new taxes that Obama called for in his budget released earlier this year. (And then there’s cap and trade, remember.) And if healthcare reform costs more than expected — what are the odds of that, you think? — the surtax would go up.
[See 5 economic stimulus plans better than the one we've got.]
It pushes income tax rates above a key threshhold. Once you take into account state income taxes, the top tax rate would sneak above 50 percent. Research by former White House economist Lawrence Lindsey has found that rates above 40 percent really start to hit economic growth especially hard.
It’s risky in a weak economy. Democrats love the “consensus view” when it comes to climate change, so how about the economy? The consensus view is for unemployment to hit double digits this year and stay high throughout 2010 and beyond as the economy staggers to its feet. Even Treasury Secretary Tim Geithner said “it seems realistic to expect a gradual recovery, with more than the usual ups and downs and temporary reversals.” In a “long recession” environment, do we really want a policy that, according to research that current White House economic adviser Christina Romer conducted at Stanford University, is “highly contractionary.”
It actually makes America’s healthcare problem worse. Entitlements, including Medicare, will eventually bankrupt the economy unless action is taken. Agreed. But lowering the potential U.S. growth rate will only make those problems worse by generating lower tax revenue and making the overall pie smaller than it would be otherwise. Yet many economists think government interventions in finance, housing, autos, energy and now healthcare will do just that. And adding layers of additional new taxes helps how?
It makes the tax code more lopsided and inefficient. As it is, the top 1 percent of Americans in terms of income pay 40 percent of taxes. Not only would this plan exacerbate this imbalance, it adds further complexity to the tax code. Most tax reformers favor a simpler system with fewer brackets and deductions matched by a lower rate. Indeed, Howard Gleckman of the Tax Policy Center points out the following:
Many of the uber-rich are unlikely to pay much more in taxes than they do now, despite the rate increase. Since we’d be returning to pre-1986 rates, we shouldn’t be surprised when the very wealthy reprise their pre-1986 sheltering behavior. The hoary financial alchemy of turning ordinary income into capital gains, morphing individuals into corporations, and deferring compensation will return. Remember, the targets of these tax hikes are the people who can most easily manipulate their income. The bad old days of bull semen partnerships may not return, but I suspect the financial Merlins are already cooking up new shelters for what promises to be a booming new market.
It hurts U.S. competitiveness. America already has the second highest corporate tax rate in the world. Under the House plan, the top U.S. income tax rate would be higher than the OECD (advanced economies) average of 42 percent. France and Germany, by contrast, are looking to keep rates stable or lower them. Pro-growth China doesn’t even tax investment income.
It ignores the lessons of Clinton. Democrats love to point out how the Clinton tax increases didn’t tank the economy back in the 1990s. Oh, you mean the economy that was expanding for more than two years before he signed his tax increases? The economy is far weaker today and may be anemic for some time given the history of economies that suffered a banking crisis.
It ignores the lessons of 1937. The slowly recovering 1930s economy weakened again in 1937 and 1938. Again, Christina Romer tells all:
In this fragile environment, fiscal policy turned sharply contractionary. The one-time veterans’ bonus ended, and Social Security taxes were collected for the first time in 1937. … GDP rose by only 5% in 1937 and then fell by 3% in 1938, and unemployment rose dramatically, reaching 19% in 1938. The 1937 episode is an important cautionary tale for modern policymakers. At some point, recovery will take on a life of its own, as rising output generates rising investment and inventory demand through accelerator effects, and confidence and optimism replace caution and pessimism. But, we will need to monitor the economy closely to be sure that the private sector is back in the saddle before government takes away its crucial lifeline.
Except in this the case, Uncle Sam is not taking away a lifeline but tightening the noose.
It pays for a wrong-headed healthcare reform plan. Health exchanges, a public option, subsidies, taxes … well, we could go on and on. Or we could try to create a simpler consumer-driven market. Harvard Business economist Regina Herzlinger recommends reforming the tax system by making the money spent by employers on health insurance available as cash, tax-free, to employees. “Insurers would then compete for customers with policies that offer better value for the money,” she wrote in an analysis for consultancy McKinsey. Not even on the Obamacrat radar screen, though.
All in all, it’s another sign from the Obama administration and the Obamacrats in Congress that their top priority is redistributing existing wealth — at least what’s left of it — rather than creating new wealth. That, I guess, explains those ear-to-ear smiles on Capitol Hill.
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Obama doesnt care about the US economy. He only cares about pushing his liberal agenda. All else is secondary.
Good points all. This is not about healthcare reform. No sir, not at all. Healthcare reform has been in effect in NY, NJ and MA since the early 90′s and is a costly bureaucratic failure. In NJ, the government designs the plans the market can sell, the government designs the mandates that say what services and procedures the carrier will cover unquestioningly, and the government approves the rate structures from the carriers as well as the renewal rate factors. All of this government meddling has driven rates from $89 for a single person now up to $487 a month for that same plan. That is almost 500% over 15 years. You can not blame private industry for this as government was the final word on these numbers.
No what this is about is control. Control of dollars and their allocation, control over people’s lives which in turn controls how they vote.
Reform is needed, yes but the reform should come from hte side of private industry. Government had their chance to reform and fumbled the ball. Let’s not let them make that same mistake twice.
Those of a certain age may recall the Thirties’ forecasts of disaster when FDR’s Democrats passed Social Security legislation By comparison, Mr. Pethokoukis’s article doesn’t qualify as jacks-for-openers.
Uh, Steve….Social Security is broke. There is no “lock box” and the ratio of takers to payers is growing exponentially. That being the case the dire predictions of economic collapse were correct it just took time to prove it out.
Healthcare will not have that luxury because it is too huge and being introduced in a horrible economy with a far greater number of people immediately dipping into that program which is something Social Security did not have to worry about at the time of it’s introduction through it’s early years. The pain of government healthcare will be felt almost immediately. When you combine it with Cap and Tax, our shaking economy will tank.
Growing “exponentially”, RobbieRob? Do you even know what the word means? If you did, you wouldn’t use it.
The downturn in 1937 happened because FDR was trying to balance the budget–something Republicans are urging now. When tax revenues are still sagging and government must run a deficit to provide any services at all, balancing the budget becomes a disastrous proposition. The time to pay down the debt was the first eight years of this millennium, but Bush decided deficits during a boom were better. If you want to find the end of the Great Depression, look at World War II, and the United States war effort was nothing if not a gigantic stimulus. The resulting, deficit-funded, investment in American industry and infrastructure fueled a boom which lasted through the 50′s and, ultimately carried us into the 21st century.
Conservatives who hate and fear the idea of a public health care option…I suppose you want to destroy public education too? That is one of the things which has made this country great, and I defy any of you fools to prove otherwise.
No national healthcare. You tax and spend liberal/communist. Concerning sotomayer and the 2nd amendment in Maloney she held that numchucks are dangerous weapons and new york is allowed to outlaw them. So if numchucks are illegal a tool that martial arts experts swing to garner balance and stealth then anything that the states say is a weapon at their purview mind you can be outlawed. for example baseball bats are more dangerous than numchucks so it follows that sotomayer will outlaw them also. she is totally against the constitution. she sued her college law school because there wasn’t enough blacks on the faculty. she is a bean counter. she is a very dangerous person who is dangerous for america. But, recall the democrats will do anything for power:
1. 911 they caused by not allowing FBI and CIA to communicate. Gorrillic memo.
2. They caused sub prime mortgage debacle causing you to lose half your 401K value. Remember upchuck shumer and indy mac. The october 08 suprise that they foisted on the republicans when it was actually maxine walters, frank, and dodds plan to get elected.
3. global warming occurs when summer comes. Al gore failed science in college.
4. they wrecked the auto industry and gm and chrysler are dead and gone or on life support. basically, taking money from our families to support illiterate union workers who organize votes for commie barac.
Of course increasing taxes on the rich is foolish, but it was necessary to protect and keep the insurance industry in the loop. They gave $46 million in campaign contributions and obviously had more clout than the rich folks. That’s what you get when politicians are allowed to take private money to run for public office. It’s called corruption. Only public funding of campaigns would have made the decision come out in the best interest of the public.
Jack Lohman
http://MoneyedPoliticians.net
Michael,
Republicans hate being forced to pay for others from their success. Who are you to say that my success must pay for your needs? What happens when those that succeed in life say “No More!” This socialist mindset is dangerous to our country, and those that ascribe to that thought are like a cancer on our whole society.
Michael said
I suppose you want to destroy public education too? That is one of the things which has made this country great, and I defy any of you fools to prove otherwise.
That is typical of progressive thinking, your mind is already made up. I can tell you I teach in public education and the quality of education is rapidly being destroyed because of liberal policies. Our urban (65% free lunch)district has a no retention policy, NO ONE gets held back, not even youngsters who would benefit from additional English language learning. The federal and state governments spends MILLIONS on teacher professional development. I have personally spent
( forced) time at the finest ( most expensive!) hotels to listen to “experts” blah, blah blah about diversity and learning styles and then my school doesn’t have money to buy paper and our library has books from the 60′s. Progressives whine about money yet we WASTE most of what we receive on non effective programs and NO accountability to teachers, students and most of all parents!
Obama is a twist on The Manchurian Candidate. Rather than being a brainwashed unwitting assassin, Obama, with the help of the Democratic leadership, is leading brainwashed liberals/progressives into unwittingly assassinating the US economy. Kill the US economy and democracy and freedom die. Obama/Pelosi/Reid’s policies may be more dangerous to our democracy and freedom, indeed democracy and freedom throughout the world, than all of its other enemies combined.
I heard an interesting reply to “Yes we Can” at a recent Tea Party here in Atlanta. “Just because we can, doesn’t mean we should”. Which I feel applies to everything the liberal monolith is attempting to do. But when you feel normal global climate variation is caused by man made CO2 ( natural element that is one of the foundation reasons life exist)then any excuse is ok for them. Actually all the lies Obama is putting forth about ” no new taxes” for anyone making under 250K. He has already passed a huge tobacco tax which we all know is mostly on the backs of lower income people. Also, the tax on COBRA. Employers who lay off workers must now fund 65% of the COBRA insurance for those workers layed off. We all know all taxes are passed on to the end user… So now that the jobs promised are still fading into oblivion… who is going to stand up and shout NO MORE! ??? ME!
@Michael
Your statement is a mere regurgitation of the fallacy pushed by Krugman and his posse on what happened during the Great Depression. This lunacy had been debunked over and over again. Just today, there is a detailed account by Ohanian at Forbes on why this “theory” does not hold water.
Is it just me or does it seem that O’Bama’s economic Czars are de-constructing the economy by design. When Christina Romers’ analysis of 1938 calls the implementation of policy “contradictory” and then she and her Keynesian acolytes embark on same trajectory, one has to wonder if their judgement is merely flawed or is something more sinister at work here. To encumber the very constituency that will drive a recovery with a tax and regulate agenda is to consign any hope of economic growth into the realm of “… Big Brother knows best”! It looks like the age of the “philosopher kings” has returned and believe me, O’Bama et al truly believe that this indeed is the nature of ‘Hope and Change”!
I’ve never understood why so many people seem to feel that healthcare is a right.
To control health cost and save our country from taxes, do away with Medicare, Medicade and health insurance. The savings would be enormous, insurance company cost plus profits, all the current overhead that goes into billing, the money spent on lobbying, thousands of government employees could be fired, etc. People would shop for the best prices and would be forced to save for medical bills. This would not be perfect, but better than anything we have now or that has been proposed. I realize there is zip chance of closing those programs, but I truly believe it would be the best way to control cost.
“Conservatives who hate and fear the idea of a public health care option…I suppose you want to destroy public education too? That is one of the things which has made this country great, and I defy any of you fools to prove otherwise.”
Duuuuuh. The public schools you tout are, on average, (in large cities) graduating less than 50% of their students. National healthcare anyone?
I’ve never understood why so many people seem to feel that being able to read and write is a right. Or having firemen and police. Who are you to tell me that I have to help pay their salaries? Just because I make $3 million/yr doesn’t mean that I should have to pay another $108 thousand/yr.
The poor are scum, and should die instead of me paying for them.
TYRANNY!!!
“Who are you to tell me that I have to help pay their salaries?”
I am the government, that’s who. Now be quiet and pay up sucker. ‘Cause I said so.
State-run public schools are a disaster.
Social Security is a disaster.
Medicare is a disaster.
Medicaid is a disaster.
The national debt and deficits are disasters.
Now Obama wants to birth to us government-run health care. God save us!
Steve Stone says: “Those of a certain age may recall the Thirties’ forecasts of disaster when FDR’s Democrats passed Social Security legislation By comparison.
You do realize that SS is a disater just on the horizon?
Its already broke funded on IOUs.
This writer has it all wrong. Completely wrong. He’s forgetting that Obama and the top Dems actually want to destroy our way of life as we know it. So his points are meaningless to them.
In order to save on health care costs and to save other government programs, the Obama Administration has begun offering the public health care option via the following new health care delivery methods:
* All Primary Care Physicians will be offering care and treatment at every local US Post Office in order to better support Postal Reform. Postal delivery on Monday, Wednesday, and Friday. Medical care on Tuesdays and Thursdays; no Tuesday care if Monday is a Federal Holiday.
* All recently closed auto factories of Chrysler and GN will be converted into Health Care Surgerical Assembly operations for assembly line type healh services, with separate assembly departments for:
Waiting Line for Waiting Line, Triage, Intake/1040-type form, Waiting Line, Government Assessment, Waiting Line, Prioritization, Stamping, Waiting Line, Fluids Flush, Waiting Line, Body Work, Test Walk, Waiting Line, New Fluids Insertion, Collection of Large Co-pays
* All Medical transportation from one smaller medical assembly plant to a more specialized medical assembly plant will be offloaded to Amtrak. All non-ICU patients will be offered coach service without specialized medical assistance.
All ICU patients will be transported in Stimulus funded, newly refurnished Amtrack high speed Mail Cars, recently purchased on eBay from the former USSRs Trans-Siberian Socialist Medical Mail Car stock. (USSR-TRS-MMC)
* Consumer financing for the enormous co-pays, out of network payments, cost of all specialized tests, cost all overnight hospital stays, and Amtrack transportation will be available through a government-run Fannie/Freddie funding pool (FFFP), financed by consumer taxes, business taxes, soda taxes, haircut and nail taxes, internet taxes, breath taxes, personal co2 emissions taxes, public restroom stall taxes, hetero-sex taxes, Fox Channel viewing taxes, death taxes, life after death taxes ( pre-dated and payable before death).
* All new doctors will be government employees, that will be eligible for repayment of government education loans after at least 20 years of service in the Postal Medical Offices (PMO’s), and 10 years service in Soviet style Amtrack Postal Mail ICU Service cars.
* All Government Run Universal Wellness and Preventation Act programs will feature the more popular programs such as forced marches once a week, polar swim once a month, daily 10 mile walk to work, manditory cap and trade for personal co2 emissions, no sugar, no bacon, no smokes, no drink, no running, non-co2 breathing, no BO, no iceberg lettuce, no racing, no red meat, no fries, no potatoes, no milk shakes, no fun, no hetero sex, and no internet.
The only saving grace in this whole catastrophe of socialized health care is that the liberals who think it’s great will have to suffer along with the rest of us. They, too, will be denied care after a certain age if it, as Obama has already said, is not “cost effective”. They will also watch their parents denied operations and procedures and instead of being able to do what it takes to keep them alive, they’ll have to watch their decisions taken for them by bureaucrats who “care” as much about them as the politicians who “care” about poor children stuck in awful schools care about them. And, of course, like the excuse offered by Joe Biden that they were “misinformed” about how bad the economy really was, they’ll simply say the same thing about the ruined health care system and blame it on someone else. Voters, you have no one to blame but yourselves. How’s that hopenchange workin out for you?
Will Hall is right. Here in Mexico (where many US folks come for medical treatment) has TOO MANY doctors, so the competitive rates are quite low. I went to a private clinic last year and paid $2..that’s not an error–two bucks. And it is NOT govt. sponsered. And as for lawyers, there are TOO FEW. Lawsuits are very rare here. You find a good doctor, meet his price and hope for the best, just like anything in life.
So, I have a hard time with anyone who thinks that since I live well within my means (live off 60% of my paycheck, invest/save the rest) so that I can have a comfortable retirement/afford nicer things later in life (been doing this the last 16 years); I should pay a larger percentage of my income/saving to pay for things for the idiots who spend more than they make because they think they have the right, or “deserve” to live like their neighbor who makes 10 x as much as them.
Since when did the American dream become “work really hard to make a better life for the idiots who don’t know how to manage their money”? How about this, you want cheap healthcare, join the military-then you get it for free for you and your family.
I only need one reason… It’s Pelosi herself. Nothing good can come from such a creature.
Unfortunately Liberal idiots seem to consistently reward the worst behavior and punish the best. I\’ve stopped even attempting to believe it\’s really about helping the unfortunate. It is about power and creating a do nothing gimmee base to ensure their continued election to office.
When hard work, self sufficiency and success are rewarded rather than punished with higher taxes, less liberty and more responsibility for those who refuse to strive for any of the above we will see more folks who make life choices that will bring them success and prosperity.
Likewise, when we stop rewarding the lazy or irresponsible with freebies and bailouts we will see less of that.
Healthcare is not a right. I work hard and sacrifice to make sure my family has insurance. If I had to choose between a big-screen TV and health insurance I’d forgo the big screen TV. I don’t resent the idiots who choose the big screen TV. But I also don’t care to pay more taxes on what I earn so the govt pays for health insurance for those unwilling to be responsible enough to get insurance.
Now don’t start a dialog about the disabled or poor. We already pay for Medicaid for them.
I guess there was a good reason you used to have to be a landowner in able to cast a vote…if you don’t actually contribute anything productive to society you didn’t get a say in how the fruits of that productivity were spent/distributed. You mean the founding fathers actually had it right??
There is a funny new item making the rounds called “The Congressional Spending Psalm.” It begins with these words; Big government is our shepherd; the bigger it gets the more we lack!!!!
Michael,
Since you are so proud of the public eduction system, here’s one for you…
Obama wants to “reward” (not pay) hospitals and physicians for their work based on positive outcomes. In other words, if the patient gets better, you get paid.
So, why doesn’t he propose the same for teachers? Sorry, you don’t get “rewarded” unless kids learn? Well, we know the answer. Because teachers are unionized, and the Dems love unions. But the issue is the same. Neither teachers or doctors have any genuine control over the outcomes of their “customers”. There is so much more involved. But Obama has no problems threatening hospitals and health care workers while making sure he protects his union buddies.
All economists know that unemployment continues to rise for several years AFTER a recession is declared over. The Republicans are grasping at this fact as a way out of the wilderness, hoping both they and their entire media machine consisting of Rupert Murdoch’s sock puppets, that belch from the gutter Rush Limbaugh and all the other supremely unpleasant talking heads they’ve got in their employ, are hoping to convince the American people that the Democrats are responsible for all the pain associated with cleaning up the Republican’s mess.
I can’t imagine the American people after eight years of George Bush are stupid enough to buy into this nonsense, but if they are they’ll deserve what they get. Because elections have consequences – and so does stupidity.
All good points and well taken. Just one issue in my mind. If you have a 100% market (choice) healthcare system, where the consumer shops around for coverage, what happens when people opt to take the money and not buy coverage? The young and healthy (how help drive down costs of the average insured) will choose in large numbers not to be insured. People living from check to check who opt to “risk it.” Those people are still going to show up at the ER when they have a major accident or develop a major disease. What are we going to do with them?
Let’s face it. Republicans are basically SELFISH. Democrats understand the benefit and power of SHARING.
It’s so hard to deny that social welfare programs have raised the bar for society as a whole. Forget that money in the hands of poorer folks provides the purchasing power to make rich business producers richer.
But somehow, republicans find a way to justify selfishness as beneficial to the whole. It’s not. Except in the very short run. But I never really met a visionary republican who could look past the next 5 years.
It’s the same problem that quarterly earnings reports create for companies. Squeeze out short run profit at the expense of long-run growth.
It’s also the reason we’re in this financial mess today. Too much short-sighted republican thinking bankrupted our economy.
Ever read “Atlas Shrugged”??? Try it.
Let’s face it. Republicans are basically SELFISH.
Excuse me? Borowing trillions of dollars to benefit yourself that will have to be repaid by our children & grandchildren isn’t selfish? Democrats are writing the book on ‘selfish’.
Dude, you need to stop toking on that pipe.
Lets face it Democrats are statist’s and do not understand the process of creating wealth. They only Know how to destroy it. I have never met a democrat who could look past the next day. Tax the economy to hell and watch what happens. I know, saw it before with carter.
Buy more ammo we will need it.
“As it is, the top 1 percent of Americans in terms of income pay 40 percent of taxes”
But they pay very little in transfer tax revenue-Social Security and Medicare and a questionable amount in state taxes.
I ask…what is the “total tax bill” percentage?
Anything pelosi does is based on blind ignorance and low intelligence. we can’t afford national healthcare. barac doesn’t think that money grows on trees he thinks that it grows on the american peoples backs.
You forget that the democrats are going to allow the tax cuts of the previous administration to expire next year. When that is taken into account, the marginal combined federal/state tax rats will approach more like 55% of AGI.
I cannot speak for anyone else, but my wife and I have already pretty much stopped participating in society. No new car purchases, jewelry purchases, vacations, or day trips. Likewise for dinners out, charitable donations beyond 10% of income, or monetary assistance to family members.
My sister called last month. Seems her husband got laid off and their having trouble making both the truck and house payments. I said; “Last November ya’ll told me you and your husband were both voting for change. Well write a letter to the President, maybe he’ll cut you a check.”
Obama promised us if we passed the corrupt stimulous bill we wouldn’t see more than 8% unemployment. All he had to do was spend $800 billion dollars, and he couldn’t even do that! UNEMPLOYMENT is 9.5% and still shooting up, mostly likely on its way to 14 to 15%. If he got that so wrong how likely is it that he’s got something 20x more complicated right, and yet they are rushing ahead in record time. The only things we know for sure is if they are saying its going to cost $1 trillion, its really going to cost at least $3 trillion. If this doesn’t take us to 20 to 25% Unemployment it will be a miracle. Obama is going to destroy our economy!
“Conservatives who hate and fear the idea of a public health care option…I suppose you want to destroy public education too? That is one of the things which has made this country great, and I defy any of you fools to prove otherwise.
- Posted by Michael ”
I love how liberals always think conservatives are “afraid”…and concerning public education, it’s a disaster that has slowly been strangled by the teacher’s union. Prior to the 60′s the public education system in the US was considered the best in the world. Now we send students to college who have problems reading and writing. Our highschool students trail their peers around the world in math and science. Yes, our country was made great from earlier public education graduates, however, since the 60′s we’ve been in rapid decline due to churning out students who in no way have the educational skills of their parents and grandparents. Again, I fault the teachers unions who consider their teacher members to be labor and not professionals. Why is it that libs are so afraid of voucher programs which have a proven track record of success that far exceeds that of public, union controlled schools?
Grandma spent 6 weeks in Cedar Sinai.
She went in feeling not good at 86.
They proceeded to put her though tests for cancer including a bone marrow sample from which she never fully woke up from the anesthesia.
6 weeks of billing of tests by Cedar Sinai.
Then California starts the process of issuing IOUs, and the next day the doctors (6 weeks remind you) say there is nothing more that they can do.
And they help grandma pass with morphine.
So, what needs reforming here?
When we spend close to $1million trying to extend the life of an 86 year old? And then when the money stops flowing it is suddenly obvious to the doctors that they will not be able to save her with chemo.
So seriously, what needs reforming? I mean Grandma has a few grandkids that are now going to have to pay off that bill in their lifetime.
Who did that 6 weeks help?
Not Grandma. Not the people picking up the bill.
“It’s also the reason we’re in this financial mess today. Too much short-sighted republican thinking bankrupted our economy.
- Posted by NoName ”
Uh, NoName, the US was not on the bankrupt path until the government mismanagement of Fannie Mae and Freddie Mac whose toxic assets infected our banking and investment industries. The fault can be laid at Barney Frank and Chris Dodds’ feet. As far back as 1992 Frank has been fighting any type of oversight update for Fannie and Freddie. It was the Republicans who tried to improve oversight. The Dems did a great job at shutting them down (remember, dems controlled both House & Senate from 2006-2008), and look what it’s done to our economy. And as far as your self-congratulatory feelings on “sharing”, I have no problem with you sharing YOUR things, but don’t assume to think that you have the right to demand that others also share THEIR things. We are not a communist nation, however we seem to be heading towards a socialist existence, which really isn’t much different. See, we who NEVER want the government to mandate what we share of our own property, income, etc…We tend to take it upon ourselves to share by creating businesses, giving to charities (which by the way Republicans give more to charity than Dems). People who don’t have their money taken from the government are then able to turn that money into business expansions and have better oversight on how that money is spent..
the underground economy is going to thrive. we’ll never give these lazy ss liberal democrats anything. so your have to find a job you unemployeed union auto worker. but most democrats will continue to either suck money in the form of food stamps and welfare or government employees. because china is always willing to lend money to the US in return for pelosi granting china their best wishes. you know she has already promised to sell former GM hummer to china for 1 cent on the dollar in return they just have to continue to fund nancy’s government programs (Welfare, food stamps, carbon footprint, etc) Both in this context are useless molecules.
My friends when the deomcrats go down in 2010 and I’m not talking about frank. when they lose we will pay them back 1000 fold.
http://www.ustreas.gov/education/fact-sh eets/taxes/ustax.shtml
“By 1913,…Congress passed a new income tax law with rates beginning at 1 percent and rising to 7 percent for taxpayers with income in excess of $500,000. Less than 1 percent of the population paid income tax at the time.” …And less than 1% will pay this new universal healthcare surtax. Like the income tax, give it 10 years and we’ll all be paying it.
“Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others.”
NoName, Republicans are just fine with the concept of sharing. They simply want to do it without government forcing them to do it.
Dr, it is true that the top incomes pay less of a percentage of Medicare tax due to untaxed unearned income, but this amounts to no more than a maximum 1.45% disparity. The OASDI 6.20% tax has far less application, but incomes in excess of the OASDI limit do not earn additional benefits either. This latter discrepancy hardly seems unjust unless we expect OASDI to redistribute income from richer to poorer people. This wasn’t the original intent of the program. I don’t think your observation invalidates the point that the vast majority of taxes are paid by a very small proportion of upper-income people. However, what would be more interesting to know is the actual income tax rate paid by various slices of the income strata.
To Michael,
Public education is a disaster. Just look at Detroit where fewer than half the public education students graduate or Martin High School in Laredo, Texas where it is so bad that the state had to come in and take it over. Or in Cleveland, Ohio where the state had to come in and take the schools over. I won’t even talk about all the crime and discipline problems. Suffice to say, you never hear about private or Catholic school students going on a rampage or having the state to come in and fix them. And, since, the Democrats are keeping their own people in schools because they don’t believe in school choice, it has just worse year after year.
To NHSkier
What’s going to happen when the rich say no mas and leave? Who is going to pay then? Are you? Are you going to pay my health care? See, bascially, you someone to pay for your problems. But, the problem is that it is your problem…not mine…I have my own to worry about.
On the bright side actors wold be hit the hardest. Due to union requirements they have to be payed directly. No dummy corporations for them. I sure they wouldn’t mine paying an extra 2 million out of a 20 million payday.