Sunday, August 2, 2009

White House FY 2010 Budget Has A New Name

The Fiscal Year 2010 Budget from the White House is now being renamed by Obama's Treasure Secretary. While it was once described as “A New Era of Responsibility” it has now been labeled “an exploding budget deficit.” And do you think that the answer should be to tame that budget by cutting back programs that we cannot afford, the same tactic that all Americans employ when faced with a financial short come? No. We are being told that the answer could be a tax-hike for the Middle Class.

One of the latest additions to an already run-amuck budget: H.R. 3200. The H.R. 3200 bill, dubbed “America's Affordable health Choices Act of 2009,” seems anything but affordable. At the minimum it promises to add $1 trillion do our national debt and since President Obama doesn't want to appear irresponsible, rather than simply tack that onto our national debt (nobody wants that) his White House staff are leaving the door open to ask the Middle Class to foot the bill. When National Economic Council Director Larry Summers was asked if Obama would tax the Middle Class rather than keep his campaign word when he repeatedly vowed "you will not see any of your taxes increase one single dime," Summers said "There is a lot that can happen over time... it is never a good idea to absolutely rule things out, no matter what."

Now, I know a number of Americans who would like to stick it to the high priced insurance companies and find a way to bring down the cost of health care. The trouble is that H.R. 3200 is so far reaching that it funds programs, makes decisions and eliminates choices faster than it brings in alternatives or a savings. To answer your question in advance, no I have not read the entire bill consisting of more than a thousand pages. But I have struggled through the first 50 pages, and it is painful. For the government to create an affordable competitive plan they first have to take over the game. In fact, for them to compete they have to pretty well fix the game. To bring to light a comparison, imagine the following scenario:

Imagine that the U.S. Government wanted to make buying cars more affordable. Well, according to this plan, first it needs a horse in the race. So it goes and buys a car company (hmmm... check that off the list.) But owning a car company doesn't make cars more affordable. So what does it have to do? Well, it needs to control the features on the car, “optimize” them to keep the costs down. How does it do this? By creating a committee that decides who (which Americans) get what features. That is the first part of the equation: keeping costs down. But how does it make it competitive? Well, private car companies could just offer nice features at a reasonable cost and keep the U.S. own car company out of the game, right? We all win then, right? Well, no. You see the U.S. also needs to define what it means to be competitive. How do they do that? Well, they allow existing car companies to maintain their existing cars for the next four years, at which point all non-government-owned car companies now have to play by the new rules as defined by the government. Literally all of the cars older than four years old would have to come off the road at which point everyone would have to get into a car that now played by the governments new rules. In other words, if you are happy with your car, feel free to keep it... well, for the next few years, at which point all cars will have to look like the government cars. Hmmm? And the committee keeps deciding whose car gets what features? You guessed it.

Now we do the math! If you are in the Middle Class then you are currently paying a good sum of money for your health care. Next, imagine that H.R. 3200 gets passed. Now you are paying for your private health care and at the same time paying for other peoples health care because your taxes just got hiked up. I thought this was supposed to be cheaper... or “affordable?” Apparently, it is only affordable if you aren't paying taxes at all. But wait for it! You might anyway. Since Joe Biden was voted into the White House as the Vice President he has headed a task-force to define WHO the Middle-Class really is. So, for all you know even if you make less than $50,000 per year (currently the cut-off for the Middle Class), soon you might fit into the definition of Middle-Class. At what point does this plan become affordable?

Well, if you are anything like me, you are seeing a pattern here. The American public was first duped when Obama said he wouldn't raise your taxes. During the election he defied John McCain when he confidently declared to America that he could pull off his budget plans without raising taxes. He named his first fiscal budget “An Era of Responsibility” but we all now know that it is “an exploding budget deficit” at the admission of his own Treasury Secretary. I am waiting for the same Americans who voted President Obama into office to finally realize that the “America's Affordable health Choices Act of 2009” is both not affordable and oxymoronically eliminates “choice” by simply becoming the gatekeeper for the definition of what our “choices” will eventually be.

As a sidenote to this health care debate: research the history on Medicare and Medicaid. These struggling programs are constantly in jeopardy due to the way they exist and are managed by Congress. While you are at it understand that H.R. 3200 is modeled after elements of both of those programs as well as the Social Security system all of which have been bailed out over the years due to the unsustainable fiscal reality of those programs. Why are we sitting on our hands imagining that Congress is suddenly able go from mismanaging those three programs and yet we are cool with them taking on something so much larger and further reaching!?

CALL, EMAIL or WRITE YOUR CONGRESS-PERSON and tell them NOT TO SUPPORT H.R. 3200. If ever a public health care plan was a good idea, this is not that plan (and Congress knows it... now you need to tell them you know it too!)

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