Tuesday, July 11, 2017

Tax cuts for the rich?





"This is a mess of historic proportions. I am reminded of the old adage, 'be careful of what you wish for, you might end up getting it.' Well, we got it, and now we are stuck with the turd in the punch bowl. Lucky us...."



One of the things that many who were paying attention noticed during the ObamaCare fiasco noticed, were the amount of taxes it would take to fund this thing. The sad part, is with all the pain and suffering caused by those taxes, it was not enough to save this terrible program. One of the things the President vowed to do when he took office, was to kill ObamaCare, and to get rid of these recently imposed taxes on the upper end.

Please notice I did not say "rich", because the folks these taxes hit are well off, but not rich. I am talking about the .9% surtax on couples making over $250k/year and singles making over $200k/year. If you live and work in New York City, those incomes are only middle class at best. And the .9% tax is over and above the 3.8% surtax on investment income. Both of these taxes are not only new, but they are a huge obstacle in getting the economy streaming. Getting our GDP over 2% again. If you ever want to throw cold water on a recovery, just raise taxes on the "upper end".

Flash forward to right now. As we all know, we have a bid butt problem with healthcare. ObamaCare is dying, and yet the fix the House has come up with, as well as the Senate fix, are going to result in millions more being uninsured. PLUS, from an optics perspective, it will be looked upon as a TAX CUT FOR THE RICH!

In reality, when ObamaCare dies, so do the newly enacted surtaxes. And the Democrats will run hog wild with that one! Not only will those nasty Republicans throw widows and orphans off the insurance rolls, but the "big cigars" will get more money. 

Get the picture? I have talked about this before. When the Republicans won the last election, they also lost. Lost? Yup - lost. There is NO WAY possible to turn this ObamaCare thing into a win. Why? Truth tellers are in short supply on this issue. Let me help out. In order to have everyone in the country insured (as Candidate Trump talked about), it is going to cost a mint. To reduce the cost of healthcare can be accomplished only by reducing the "goodies" ObamaCare promised. Part of that is fewer people getting free insurance.

It will be interesting to see how this plays out before the long dreaded August recess. First, I will be shocked if the Senate Bill sees the light of day. Methinks many of the long standing members of the upper chamber look upon this bill as nothing more than toxic. A perfect excuse to get voted out of the dream job they have. If it dies, so does the House Bill. And if they both die, what happens to the August recess? And how about the new ObamaCare insurance rates for 2018 which are already being published? And the tax reform bill, which just the other day the Speaker said, "This will be one for the ages". Really?

This is a mess of historic proportions. I am reminded of the old adage, "be careful of what you wish for, you might end up getting it." Well, we got it, and now we are stuck with this turd in the punch bowl. Lucky us....



3 comments:

  1. Republicans should just repeal the healthcare law without a replacement, then work on an alternative later.
    Conservative Sens. Ted Cruz (R-Texas), Mike Lee (R-Utah), Rand Paul (R-Ky.) and Ben Sasse (R-Neb.) have all expressed support for that strategy.
    President Trump has also endorsed the idea of repealing first and replacing later.
    I'm more interested in watching them do a budget and increasing the debt limit.
    Republicans control Congress, the Executive branch and the Supreme Court and little is getting accomplished. I guess governing is not as easy as one would think.
    It might help if the Mueller investigation would conclude and get the Russian nonsense out of the news. Every administration has some sort of scandal. This one got greater traction because the Trump folks didn't have experience dealing with the media, and the still uncontrollable tweeting of the leader.

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  3. Everybody talks as if the cost, quality and availability of health care can all be controlled by government. At best one can control 2 of the 3 and government action usually results in all 3 going to Hades in wicker art. It accepts the notion that the system of health care must always be done exactly as we are now doing it. But suppose there were a way to cut the cost 50%, by getting government OUT of the business? Wouldn't more people be able to afford care, doctors more likely to provide it, and outcomes likely to improve without "mandated best practice"?

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