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Taxing Benefits: The Wrong Way to Pay for Health Care |
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One of the principles that must be at the heart of health care reform is making sure it’s paid for fairly. Unfortunately, some members of Congress are trying to fund it in the wrong way—by taxing working families’ health benefits.
The Senate Finance Committee’s bill, unlike the bills passed by committees in the U.S. House, relies on an excise tax on health coverage, starting in 2013, to fund health reform. That’s a short-sighted policy that could hurt millions of people that health care reform is supposed to help.
A new report by the Economic Policy Institute (EPI) shows that, under the current Senate Finance Committee proposal, the excise tax would hit about one-third of health insurance plans within the next decade. This could cause millions of middle-class families to suffer a tax increase or to get their benefits pared back, the report says.
To the extent that workers choose less expensive health plans for themselves and their families to avoid the excise tax, they will be faced with higher out-of-pocket costs. All else equal, lower premiums translate into less comprehensive coverage. Less comprehensive coverage often takes the form of higher deductibles, increased co-pays, higher out-of-pocket maximums, or other increased cost-sharing.
The EPI finding echoes findings in an updated report by the Communications Workers of America (CWA), which suggests an excise tax would have a tough impact on middle-class families. The CWA report cites estimates from the congressional Joint Committee on Taxation that 31 million taxpayers will be affected by 2019, paying an average of $1,318 in higher taxes. Because of the steep rise in the cost of a health care plan, the excise tax would hit more and more families over the coming years. The impact on older workers and workers living in high-cost areas or working dangerous jobs could be even more severe.
There are better ways to pay for health care reform. The bills proposed in the U.S. House, for instance, pay for it with a combination of employer responsibility, a surtax on the very wealthy and the significant savings realized from having a strong public health insurance option.
Since the goal of health care reform is to lower costs for families and guarantee access to quality care, an excise tax that imposes a financial burden on working families just doesn’t make sense. In fact, Sen. John McCain (R) proposed a tax on health care benefits in the 2008 election—and lost. America’s working families have made their feelings clear: they don’t want to pay for health care with a tax on their benefits.
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Like I keep saying, its time to start over. Too many people trying to be too cute on this one. If they don’t stop now and realy try to get it right,its not gonna come out good for any of us. Now it just seems to be more about somebody winning something,then it is about us.
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This article is another example of the endless dis-information babble
about what’s wrong with variations on Obama”s demagogically named
“health care reform”
Any and all proposals that maintain or expand corporate profit (the
bottom-line result of Obama’s reform) will break down as being too-expensive,
will not cover everyone (non-citizens excluded), and will actually fine
working people who don’t want to see any more of their already inadequate wages going into the pockets of some gangser “health care” business.
MEDICARE FOR ALL, UNIVERSAL SINGLE-PAYER WILL COST ABOUT ONE HALF OF ANY CORPORATE FOR PROFIT-SCHEMES!
THE AFL-CIO AND ORGANIZED LABOR AND UNORGANIZED WORKING PEOPLE MUST DEMAND THAT THIS MOST CORRUPT “REFORM” BE STOPPED NOW!
WHY WON’T THE AFL-CIO LEADERSHIP HEED THE DEMANDS OF IT’S MEMBERS IN SUPPORTING UNIVERSAL SINGLE-PAYER MEDICARE FOR ALL????
THE AFL-CIO “LEADERSHIP” IS ONLY LEADING TO THE FURTHER DESTRUCTION OF THE AFL-CIO AS IT NO LONGER CAN BE EXPECTED TO REPRESENT THE NEEDS AND DEMANDS OF IT’S MEMBERS.
THERE IS A DESPERATE NEED FOR LEADERSHIP OF ALL WORKING PEOPLE TO DEMAND THE END TO CORPORATE LOOTING OF THE ECONOMY, THE DESTRUCTION OF PUBLIC HEALTH CARE AND DESTRUCTION OF PUBLIC EDUCATION. ETC.
A NEW POLITICAL MOVEMENT AND PARTY MUST BE CREATED BY
NOVEMBER 2010 TO MAINTAIN AND DEMAND ALL THE NEEDS OF WORKING PEOPLE FOR JOBS, HEALTH INSURANCE, PUBLIC EDUCATION, SOCIAL SECURITY AND MEDICARE MAINTENANCE, ETC.
THESE DEMANDS ARE TOTALLY IGNORED BY THE CORPORATE CONTROLLED DEMOCRATIC PARTY. THE SIMPLE TRADE UNION PHILOSOPHY OF WORKING TO GAIN THESE ESSENTIALS THROUGH TRADE UNION CONTRACTS WITH EMPLOYERS HAS BEEN DESTROYED BY GLOBALIZATION AND THE DECLINE AND NOW COLLAPSE OF TRADITIONAL CAPITALISM IN THE UNITED STATES.
EVEYONE IN THE WORLD SEEMS TO KNOW THESE BASIC ECONOMIC FACTS OF LIFE EXCEPT THE LEADERSHIP OF THE AFL-CIO.
TO START BUILDING AN ECONOMY THAT SERVES THE NEEDS OF THE PEOPLE, IT FIRST MUST STOP THE CORPORATE LOOTING:
* END THE FOREIGN WARS NOW! Withdraw all troops from the Middle East immediately. Shut down the 700 foreign bases. Cut the military budge in half. Shut down funding of un-needed and defective aircraft, atomic submarines, etc. with full re-training, full retirement, of all affected defense workers.
* Re-establish full pre-Reagan taxation on corportions.
* Ntionalize federal banks. Encourage the formation of State Banks for low-interst funding of State functions, student-loans, credit cards. other consumer and state government needs.
* Nationalize (socialise) the national entire energy systems of the U.S.
(oil, gas, coal, nuclear, etc.) to end destruction and pollution of environment,
to end the big motivation for war (OIL),
* With the funds generated from above, give immediate emergency financial
support to the states to restore public education, essential social services.
etc.
* Bankrupt capitalism is no longer capable of creaing “living wage” jobs for millions of unemployed workers in the United States. Millions of jobs are needed to fill the needs of society for re-building the infrastructure, rebuilding houses, schools, hospitals, end pollution with nwe forms of non-polluting transportation,
for the education of a million new teachers, doctors, environementalists. etc.
Unemplloyed people, especially young people, should be given full scholarships for higher education to learn these skills for survival of huanity.
In other words, a transition is essential for human survival here in the U.S. and globally. A transition from a capitalist economy that profits a tiny minority while impoverishng the vast majority. A transition to a democratic socialist economy that organizes itself to provide for the economic needs “of the people, by the people, and for the people.”
To read and study the socialist perspective please read and sign up for a free newsletter subscription to the daily World Socialist Web Site: http://www.wsws.org
The above may be shocking, uncomfortable, disagreeable, etc. but
at least find out what ithe term “socialism” s all about. (i.e. The ignorance
of saying that “Obama is a socialist.”) Don’t make the saying “Ignorance is Bliss” control your life.
THE IGNORANCE OF WORKING PEOPLE is BLISS TO THE CORPORATE CAPITALISTS that are looting and destroying this country and the planet!
There is a history that must be considered.
In 1946, and again in 1962, and yet again in 1978 Congress passed laws that essentially protected workers against job-loss due to mass production and cheap foreign imports. If labor had fought technological advances way back then where would the U.S. be today? Instead, labor agreed to allow mechanization, in exchange for various protections for workers. Business and government were elated! (At the time, 37% of all U.S. workers belonged to unions.) Health care and pensions are examples of the protections.
Over the years, both Congress and corporate America have reneged on their promises. Anonymous stockholders represented by corporate chieftains were handed guarantees that are unavailable to people like you me. Corporate America literally purchased powerful politicians who thereafter did what they were told. That is one of many reasons why the living standard of working class America has been stagnant over the past 30 years.
Corporations and Congress double-crossed us. When Reagan was allowed to bust the air traffic controllers we got double-crossed. NAFTA was a double-cross, and so was WTO, CAFTA, and other anti-worker trade schemes.
Today, the wealthiest 400 families in the U.S. have a total combined net worth if $1.57 trillion! Yes, trillion! How can that be when at the same time 20% of our people live in poverty? That’s the price the working class pays for being double-crossed.
Fast-forward to the issue of taxing “Cadillac Plans”. Yes, that would raise a good deal of money, but nowhere near what is needed to cover every resident of our nation with good, accessible health care. Why? Because the profit-takers (insurers, for-profit hospitals, and the pharmaceutical industry) would still be in the game and would continue to purchase favors from Congress. Profits are the only thing that are important to stockholders. History shows us that their corporate representatives will stop at nothing to keep them happy.
Besides, a small tax on the richest 400 families would produce as much revenue as would a tax on “Cadillac Plans”. Let’s face it, those 400 families wouldn’t even miss it!
Here’s a deal for you. Rather than agreeing to join a ten lap race after nine laps have already been run, let’s tell Congress that we’ll consider the Cadillac tax the day after the millions of our jobs that have been shipped offshore are returned.
The long and short of it is that corporations and Congress double-crossed is, and now they want to double-cross us again.
There is a solution. It is a humane and ethical solution. It is single payer.
Despite all the propaganda put out by corporations and their surrogates in Congress and the media, single payer would cost no more than the $2.7 trillion that will be spent on health care this year. It would cost no more, yet would cover everybody for virtually everything, without deductibles or co-payments. How? By taking the profits out of health care. Gone would be the 1300 different insurers and their endless paperwork and bureaucracy. Price-gouging, for-profit hospitals would be replaced by non-profits. (By the way: One of the 400 richest families is the Frist family. They own the Hospital Corporation of America. Not so coincidently, Bill Frist was the former GOP senate majority leader. When we follow the money great revelations are made!)
Pharmaceutical companies would be required to control costs.
Doctors would be fairly compensated. And don’t be fooled. Single payer would expand choices. People would be free to choose any doctor, anywhere, anytime.
Facilities and equipment would be funded according to need, not profit.
The average family of four currently pays about $13,375 in premiums, plus deductibles and co-pays. With single-payer, that family would pay 4.75% of household income for 100% health care. The median income of a family of four is about $55,000. Under single payer they would pay $2612.50 per year for the whole family (not per person) and everything would be covered. They’d choose their own doctors. There would be no deductibles or co-payments. Single payer would give them what amounts to a $10,762.50 yearly “wage increase”. What would they do with the additional money?” They’d spend some and save some. It would be the ultimate stimulus to our economy.
Alas, the solution is not in the cards right now. The medical-profits industry has bought too many politicians. We’ll have to raise some real hell in order to get health care justice. We must not, however, give up. It is within our grasp! Until then, let’s refuse to reward our double-crossers. Let’s refuse to join a race that is designed to assure we’ll finish last.
Keep the fire burning! The road to justice is single payer!
For more information go to Healthcare-NOW.org
Peace and justice to you.
Rich A.
Thank you.