Archives: June, 2009

Education Tax Credits Still on the Table in Indiana

The Chicago Tribune reports today that education tax credits are still being pursued despite huge holes in Indiana state budgets … maybe because school choice saves money?

[Indiana] Republican Gov. Mitch Daniels’ budget proposal includes a scholarship tax credit that supporters say would give poor students the opportunity to attend private schools, but opponents say would open the door to vouchers.

Daniels’ budget proposal includes a 50 percent tax credit for donations to a nonprofit scholarship-granting organization that helps students from low-income families attend their choice of a private school or a public school outside their home district.

A couple of quick points.

I’m not sure how this would “open the door to vouchers,” since credits are an alternative form of school choice and obviate the need for vouchers.

Gov. Daniels should promote a 100% tax credit for donations, not a 50% credit. At the least, he can drop that to 90% like the successful Pennsylvania credit program. But 50% is simply too low to act as an effective catalyst for serious reform. And as we all know, its best to aim high at the start of negotiations so you have somewhere to go. He’s selling himself and his state short on this.

If You Have Health Insurance Today, You Can Keep It (or Not)

During his speech yesterday to the American Medical Association in Chicago, President Obama said not once, but twice that if you have health insurance today and like it, you will be able to keep it under his reform. Shortly afterwards, the congressional budget Office released its initial scoring of the health care bill drafted by Sen. Edward Kennedy (D-MA) and the Senate Committee on Health Education Labor and Pensions (HELP), concluding that it would result in roughly 23 million people losing the insurance they currently have. Oops!

What’s a Trillion Dollars Among Friends?

If you’re Barack Obama, money is no object. The national debt exceeds $11 trillion. We’ve had about $13 trillion worth of bail-outs over the last year. The deficit this year will run nearly $2 trillion. The Congressional Budget Office warns of a cumulative deficit of some $10 trillion over the next decade.

Now Obama-style health care “reform” will add another $1 trillion in increased spending over the same period. And the ultimate cost likely would be higher, perhaps much higher. Reports the Congressional Budget Office:

According to our preliminary assessment, enacting the proposal would result in a net increase in federal budget deficits of about $1.0 trillion over the 2010-2019 period. When fully implemented, about 39 million individuals would obtain coverage through the new insurance exchanges. At the same time, the number of people who had coverage through an employer would decline by about 15 million (or roughly 10 percent), and coverage from other sources would fall by about 8 million, so the net decrease in the number of people uninsured would be about 16 million or 17 million.

These new figures do not represent a formal or complete cost estimate for the draft legislation, for several reasons. The estimates provided do not address the entire bill—only the major provisions related to health insurance coverage. Some details have not been estimated yet, and the draft legislation has not been fully reviewed. Also, because expanded eligibility for the Medicaid program may be added at a later date, those figures are not likely to represent the impact that more comprehensive proposals—which might include a significant expansion of Medicaid or other options for subsidizing coverage for those with income below 150 percent of the federal poverty level—would have both on the federal budget and on the extent of insurance coverage.

Then there is the more than $100 trillion in unfunded Medicare and Social Security benefits.

Just who is going to pay all these bills?

Don’t worry, be happy.

REAL ID Revival Bill Introduced in Senate

Though it’s not yet available, word has it that a bill to revive the REAL ID Act has been introduced in the Senate.

Its sponsors are an unlikely group: Senators Akaka (D-HI), Tester (D-MT), Baucus (D-MT), Carper (D-CT), Leahy (D-VT), and Voinovich (R-OH). REAL ID was dead in the water, but with a name change and a few burrs taken off, these five senators may just give it life once again.

Watch this space for posts as I analyze the bill and the politics. I’ll examine closely the substance of the “PASS ID Act.” I’ll try to figure out how both Senators from Montana - a state that rejected REAL ID flat out - became leaders in the fight to revive it.

More on the politics: As the stars lined up for repealing REAL ID outright, the Senate negotiated a compromise … with nobody. And I’ll look at something everyone is studiously ignoring - whether a national ID (by any name!) would actually do any good for the country!

Mises on Obama

I was rereading George Nash’s book The Conservative Intellectual Movement in America, and I found this ever-more-timely and surprisingly pithy quotation from Ludwig von Mises in his book Bureaucracy:

They promise the blessings of the Garden of Eden, but they plan to transform the world into a gigantic post office.

(Meanwhile, thanks to the continuing progress made by the non-state sector of society, what a wonderful world in which both these brilliant books can be read either in hard copy or on line!)

New Video Explains Why Soak-the-Rich Tax Increases Are Misguided

The Obama Administration is proposing higher taxes on just about everyone and everything, but one common theme is that most of the tax increases are being portrayed as ways of fleecing the so-called rich. This new video, narrated by yours truly, provides five reasons why the economy will suffer if entrepreneurs and investors are hit with punitive taxes.

As always, any feedback on message and style would be appreciated.