Passing the buck

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Americans are becoming more concerned about the massive amount of government spending. Whether it’s a so-called economic stimulus, some type of bailout, or a healthcare proposal, even those on the left are starting to wonder how we are going to pay back the $12 trillion national debt we’ve already accumulated. With projections that the debt will double in the next 10 years, each family’s part is scheduled to rise from about $100,000 to $200,000. Even paying the interest on this amount of debt will be a long-term drag on the economy.

As Americans are becoming more aware of this impending financial debacle, our left-leaning politicians are turning more to “lest costly” approaches to funding their largesse. The latest attempt is Pelosi’s proposal for a windfall profits tax on insurance companies to help finance a piece of the coming entitlement. The idea here is that insurance companies would simply pay the tax and go about their business while the government gets a bump in revenue. Nothing could be further from the truth.

Business taxes are eventually passed along to the buyers. Investors rightfully demand a competitive return on their investments, so if Washington is going to take a larger chunk of a firm’s profits, it has no choice but to find money somewhere else. There are only two options here, raise prices or cut corners on its products or services. Either way the consumer pays the bill. Don’t be fooled—a windfall profits tax is an indirect tax on consumption.

There’s only one rational explanation for Pelosi’s proposal. She must assume that your hatred for corporate America—in this case insurance companies—will generate an emotional response of support. She also must assume that you’re ignorant of the economic reality that business taxes are simply passed down the line. She might claim that a particularly healthcare proposal will cost the government less because of accompanying hikes in business taxes, but we’ll pay for it either way. Whether it’s through higher taxes, economic stagnation due to more borrowing, inflation due to printing money, increases in our insurance premiums, or cuts in our insurance benefits, WE WILL PAY THE BILL IN THE END.

I just wish someone on the left would make an honest proposal that defines how we will actually pay for this massive healthcare entitlement. No smoke and mirrors, no assumptions about cutting fraud, waste, and abuse, and no passing the buck to evil corporations who must in turn pass it along to us. The reason they don’t is quite obvious. Only far leftists and zero liability voters (the name Andrew Wilkow gives those who don’t pay taxes anyway) would support this type of takeover of the government system if took a rational look at costs and benefits. This coalition isn’t quite sufficient to sustain an Obama presidency. The fact that Pelosi and others are starting to emphasize business taxes and fees as part of the financing is evidence that we’re starting to win this battle. Now is not the time to quit fighting.

6 Comments

6 Comments

  1. Genius  •  Oct 9, 2009 @3:35 PM

    this is why they want to vote on the bills before we have a chance to read them.

  2. proudlefty  •  Oct 9, 2009 @4:04 PM

    Get real Parnell. Someone has to pay to fix this mess and the insurance companies are much to blame. We can’t afford to pay anymore. Why should insurance companies make record profits when millions of Americans can’t afford healthcare?

  3. jeff  •  Oct 9, 2009 @11:46 PM

    ah yes, Genius….yes, the “new standard for openness and accountability” turns out to be more b.s. – surprise surprise, more lies from the dems…the other day they came with some fraud that they couldnt put the new bill online because it impossible due to some IT reasons, which was YET ANOTHER FLAT OUT LIEEEEE!!! it takes nothing to put this stuff up on the internet, worst case just scan it to a PDF file, you LIARS…its just how stupid the dems think Americans really are and they know they wont get called on it by their freaking shills in the media….they rather bring this bill up in the middle of the night as usual – skunks, frauds, crooks…

  4. carrier  •  Oct 10, 2009 @6:17 PM

    Hey lefty, insurance companies are just delivering a service at a profit. We should allow people to buy their own medical insurance across state lines with the same tax benefits that they get when their companies provide it as a benefit. This would make health insurance more competitive and this is the kind of real reform ideas you get from conservatives. The democrats want nothing to do with this. BTW, many of the people on Medicare at the doctor’s office drive nice cars and wear the latest fashions. If they can’t afford healthcare, they seem to find the money for other things.

  5. jeffo  •  Oct 11, 2009 @8:10 AM

    Lefty, please enlighten us on specifically and factually how insurance companies are to blame for this “mess”? (With 85% of Americans insured, most satisfied with their coverage and that no one gets denied needed care, I question the presumption that we are in a “mess” anyway) I will bet that Dr. Parnell and other posters will be able to refute every reason you come up with by pointing out how government meddling has caused the “problems” you bring up.

  6. Crispy Critter  •  Oct 12, 2009 @6:50 PM

    Why don’t we FIX MEDICARE FRAUD before we try to fix The Titanic? I met a woman at an OVERFLOWING townhall meeting in Georgia and she told me her father had been dead 2 years and she got a bill for over $2,000 supposedly someone had just submitted…she called the government and they said, well, you just call this number and report it…yea, wonder if anything ever gets done on it. Fix that before you give insurance companies the blame.