The Tax Red Herring

One aspect of ObamaCare bubbles to the surface of the debate every few days.  Will ObamaCare require raising taxes?   If so, will it tax the bottom 95% Candidate Obama promised to insulate from any tax increases?

Be assured no tax increase on the 95% will be included in the initial health care legislation.  Obama and his supporters will act as if they have been chastened by public opinion and have submitted to The People’s demand that the Obama 95% continue to be protected from tax hikes.

But each new year brings another session of Congress with unlimited power to tax anyone, at any rate, for any reason.  Even if ObamaCare goes down in flames, the government is facing oceanic unfunded promises to pay for Medicare, Social Security, Medicaid, and other health programs.  Either  dramatic tax increases or dramatic benefit cuts, or both are simply unavoidable.

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The Bottom Line

Most likely there will be substantial tax increases, in the future, on everyone from “the rich” to the lower middle class, with or without ObamaCare.  If we The People submit to a government take-over of health care just because it doesn’t include a tax increase today, we will have fallen for a cynical, political trick.

3 Comments so far

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  2. Drew on August 19th, 2009

    As Martin Feldstien noted in an op-ed piece, rationing is at the heart of the Obama plan:

    “The White House Council of Economic Advisers issued a report in June explaining the Obama administration’s goal of reducing projected health spending by 30% over the next two decades. That reduction would be achieved by eliminating “high cost, low-value treatments,” by “implementing a set of performance measures that all providers would adopt,” and by “directly targeting individual providers . . . (and other) high-end outliers.” ”

    Has anyone seen the statistics on the percentage of the population that will become over over 65 in the next two decades? Its a big increase and those are the big health care service usage years.

    Talk of “death panels” is disappointing, although maybe fighting fire with fire is the only practical approach. But any way you look at it, rationing is the Obama plan.

  3. “Right” Blog Postings on August 19th, 2009

    […] Liberty Works warns of the Democrat's Middle Class Tax Red Herring! […]