Monthly Archives: September 2009

The Other Bad Healthcare “Reform” Bill

Fascism in America, Healthcare, Taxation, The Welfare State

The Senate Finance Committee is finishing up work this week on a “compromise” Obamacare bill that’s being billed as better than pure Obamacare because it doesn’t include “death panels”, a public option, and free healthcare for illegal aliens.

The chairman of the Senate Finance Committee said Monday that he will propose an overhaul of the nation’s health-care system that addresses a host of GOP concerns, including blocking illegal immigrants from gaining access to subsidized insurance, urging limits on medical malpractice lawsuits and banning federal subsidies for abortion.

But even after Max Baucus (D-Mont.) spoke optimistically of gaining bipartisan backing, lawmakers continued to haggle over a question at the heart of the debate: How can the government force people to buy insurance without imposing a huge new financial burden on millions of middle-class Americans?

Finally this bill is debating the real issue, what right does the Federal government have to force Americans to buy health insurance? Surprisingly, one of the most outspoken opponents of the individual mandate in this form is from the left.

Even within his own party, Baucus confronted a fresh wave of concern about affordability. Sen. Ron Wyden (D-Ore.) declared himself dissatisfied with the chairman’s plan, which, like other congressional reform proposals, would require every American to buy health insurance by 2013.

“Additional steps are going to have to be taken to make coverage more affordable,” Wyden said, “and my sense is that will be a concern to members on both sides of the aisle.”

Under the Baucus plan, described in a “framework” he released last week, as many as 4 million of the 46 million people who are currently uninsured would be required to buy coverage on their own, without government help, by some estimates. Millions more would qualify for federal tax credits, but could still end up paying as much as 13 percent of their income for insurance premiums — far more than most Americans now pay for coverage.

People further down the income scale would receive much bigger tax credits, effectively limiting their premiums at 3 percent of their earnings. But experts on affordability say even those families could find it difficult to meet the new mandate without straining their wallets.

“We’re talking about the equivalent of a middle-class tax increase,” said Michael D. Tanner, a health-care expert at the libertarian Cato Institute. “Yes, they’re paying it to an insurance company instead of to the government. But, suddenly, these people are paying more money to somebody.”

So American taxpayers will have to pay higher insurance premiums than they have to now or be fined by the government under this “compromise” bill. So far, this bill does nothing to solve the biggest problem with American healthcare, the high cost of it. Opponents of this bill on the left characterize this bill as nothing more than a giveaway to the insurance companies, and they’re right. The way to reduce the cost of healthcare is to increase competition and the free market’s role in healthcare and again, this bill does nothing to reduce regulation, increase competition, or promote the free market.

But there’s even more….

Also unresolved Monday was the question of how to pay for an expansion of Medicaid to cover every U.S. citizen whose income falls below 133 percent of the federal poverty level, about $14,500 for an individual or $29,500 for a family of four. Governors in both parties strongly oppose an expansion that is not fully financed by the federal government. The Senate negotiators are scheduled to brief governors by conference call Tuesday afternoon, and Baucus predicted they would be “pleasantly surprised.”

“The Medicaid costs,” he said, “are not going to cost states near as much as feared.”

Max Baucus wants the states to just “trust him”. In addition to higher insurance premiums and tax increases for those who don’t buy health insurance, Baucus plans on making the bad financial conditions that every state is in even worse with this unfunded mandate. States have to close their budget deficits some how and that some how is usually tax increases.

But there’s even more….from the Wall Street Journal

Sen. John Kerry (D., Mass.) raised concerns about Mr. Baucus’s mix of new taxes and other means of paying for the plan. Among other things, Mr. Baucus is proposing to levy a new tax on so-called gold-plated health policies. He also wants to levy new fees on health insurers, pharmaceutical companies and other health-care industries.

“There may be a better way to find that revenue,” Sen. Kerry said. He suggested he’ll be looking for changes, though he declined to offer specifics. “We are going to have a tug of war,” he said, describing the chairman’s soon-to-be-unveiled bill as a “starting point” for a new round of negotiations on details. “That’s the process of legislating,” he said.

So there’s even more tax increases, this time on health insurance companies (which will be a wash for them since they’re getting bailed out in this bill), drug companies, and the health care industry in general. In addition, if Max Baucus doesn’t like your health insurance policy, he’s going to tax it too. Well, the taxed businesses have to make up that lost revenue some how by raising their products’ prices or cutting jobs.

To recap, the Baucus “compromise” Obamacare/health insurance companies bailout plan:

Requires all Americans to buy “approved” health insurance plans and raises taxes on those who don’t buy health insurance plans Max Baucus likes

Gives the IRS more power to levy higher taxes, without due process

Raises taxes on health care related businesses

Makes every state’s financial situation even worse, which will lead to more budget cuts or tax increases through an unfunded mandate to increase Medicaid enrollment.

Increases the cost of health care for most Americans

“Hope and Change” indeed, comrades.

Kevin Boyd
I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at The Hayride.com and Rare. You can also find me over at the R Street Institute.
https://thelibertypapers.org/2005/11/22/a-bit-about-kevin/

H.R. 3311 is an oxymoron

General

Democratic Congressman Earl Blumenauer is seeking to inflict yet another tax on the American people. This one, though, is far more insidious than the average tax thought up by Congress:

The “Road User Fee Pilot Project” would be administered by the US Treasury Department. This agency in turn would issue millions in taxpayer-backed grants to well-connected commercial manufacturers of tolling equipment to help develop the required technology. Within eighteen months of the measure’s passage, the department would file an initial report outlining the best methods for adopting the new federal transportation tax.

So, why is it an oxymoron? Here’s the offending passage from Blumenauer’s legislation:

(3) EVALUATION OF METHODS AND TECH-
NOLOGIES.—Technologies and methods tested under
the Road User Fee Pilot Project shall be evaluated
on the basis of—

(A) protection of personal privacy,

– H.R. 3311

Blumenauer calls the Oregon experiment on this subject a success:

“Oregon has successfully tested a Vehicle Miles Traveled (VMT) fee, and it is time to expand and test the VMT program across the country,” Blumenauer said in a statement on the bill’s introduction. “A VMT system can better assess fees based on use of our roads and bridges, as well as during times of peak congestion, than a fee based on fuel consumption. It is time to get creative and find smart ways to rebuild and renew America’s deteriorating infrastructure.”

In January, I posted here on the same Oregon experiment:

[T]he device must be receiving precise positional data as an input from its GPS unit. It must also have a clock set to the real time and date as an input. This means that the device is getting data on the exact position of the vehicle at any moment, and that the control software is only storing certain datapoints based on this. This is an adequate privacy safeguard, right? Probably not.

Imagine this scenario: You’re driving a car with one of these GPS devices at the leisurely clip of 60 MPH on the highway leading into Klamath Falls. Like all highways in Oregon, the limit is still 55 MPH. A cop catches you going over the limit and pulls you over. You go through the normal rigmarole with him, except this time he checks your GPS devices and finds out that you’ve exceeded 55 MPH in the state of Oregon 22 times since the device was last read. You leave this encounter with 22 speeding tickets instead of one.

That scenario is possible with the hardware described in the device and minimal changes in the software. Only the good will of the Oregon state government is keeping it from being so. Should Oregonians really rely on that alone to protect their privacy?

The same holds true of Blumenauer’s proposal. To accomplish its stated goals, the technology must be designed in such a way that it either keeps a complete and total record of one’s driving or can be modified to do so. If Blumenauer’s proposal becomes law, each and every vehicle in the US will have a device carrying data about the habits of its drivers.

Even if we operate under the foolish assumption that the devices will, through their lifetimes, only be readable by those authorized to read them, they still pose a massive threat to privacy. There will exist a massive data set on each vehicle, tied by name to the owner. Such data sets are prime targets for “creative use” by miscreants both within government and outside it.

When one takes into account the exposure to cracking the Oregon model presents with readers in every gas station across the country and devices in every car, the idea that the content of these will remain secret to all but the government becomes ludicrous. The model presents the same problem as cell phone encryption. Once a security measure is cracked and vulnerable, how does one go about updating millions of pieces of hardware scattered over thousands of miles? If the devices’ security can be updated remotely, then malware can be inserted. If the devices’ security cannot be updated, then the device must be replaced every time the system is sufficiently compromised.

So, how does this bill meet its own requirement of protecting privacy? To abide by the quoted section of H.R. 3311, the researchers commissioned for the study must recommend that the other goals of the bill not be pursued. Of course, considering the bill’s intent is to find a way to track our cars, the people studying this issue are highly unlikely to issue such a recommendation, instead saying that the good graces of Washington and the presumed integrity of the security measures will be enough to keep our privacy intact. Like so much of what emanates from Congress, that will be pure bull****.

Quincy

Obama Makes Highways More Dangerous

Dumbasses and Authoritarians, Free Trade, Government Incompetence, Unions

Barack Obama’s recent dictatorial decision to once again break his campaign promise on raising taxes byraising tariffs on Chinese made tires in order to payback political allies in organized labor is already having some consequences.

First of all, Obama has probably ignited a new trade tensions that may cause a trade war between the US and China. The last time a global trade war broke, well….the Great Depression was a result. The Asian and US stock markets were down this morning on the news.

More importantly, it seems that Barack Obama may be putting American lives at risk on the highway. Consumer Reports’ official blog had a writeup that was interesting to say the least.

The Obama administration on Friday imposed a new 35-percent tax on tires made in China. That includes many of the S- and T-rated tires in our recent upcoming tire test of all-season passenger car tires. More than half of the top 10-rated tires in the November issue are imported from China.

The tariff is likely to increase prices on tires for consumers at least in the short term, as China is by far the largest tire producer in the world. Also, some tire models could be harder to find temporarily if manufacturers decide to switch production to another low cost country.

China’s crime apparently was that it built low cost tires which are better in quality than tires made by Obama-supporting union thugs. The United Steelworkers Mafia couldn’t have that so they decide to try and eliminate the competition.

Average Americans may pay for this blatant act of political pandering…with their lives in some cases.

Because the tire industry is very competitive, tiremakers may not be able to pass the price whole price increase along to consumers for long. But we at Consumer Reports are concerned that the higher tariff may indirectly compromise safety by giving consumers incentive to delay replacing worn tires. As these tires won’t be replaced for a while, it could be even more important that you take your car for a regular service, so you can see how your car is performing. An excellent car service center will offer a wide range of services – see here for a service list. Without having one, you could be endangering your safety.The move is likely to put some pressure on consumers, but more on tire manufacturers.

In addition to the lost jobs at our ports and among our importers when China retaliates and/or as a direct result of this tax increase, in addition to higher tire prices, in addition to the economic and diplomatic damage this has caused, in addition to the clear example of old style political payback behind closed doors and without public input, this tax increase may prove fatal for some Americans who will have accidents that will be caused by worn tires that they could not replace because they cannot afford them.

“Hope and change” indeed.

Kevin Boyd
I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at The Hayride.com and Rare. You can also find me over at the R Street Institute.
https://thelibertypapers.org/2005/11/22/a-bit-about-kevin/
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