Congress Is Concerned about Your Mental Health

Congress is debating a new “mental health parity” law, which would require those who purchase mental health care coverage to buy the same amount of mental health care coverage as medical and surgical coverage. 

The Congressional Budget Office (CBO) just released this not-too-technical summary.  The CBO projects that the law would increase the cost of employer-sponsored health insurance by 0.4 percent.  That means it could add another $46 to the (already rising) cost of a job-based family plan.  Not a huge amount.  But every little bit hurts.  And Congress wonders why the number of Americans without health insurance keeps rising.

Of all the purposes government might serve, there can be none higher than telling people how much insurance they should purchase for mental health care, if they purchase insurance for mental health care.

Romneycare: The Slippery Slope Slips Some More

Massachusetts has now set the minimum level of insurance required to comply with the state’s individual mandate. Not only will every resident of the state be required to have insurance by July of this year, but by January of 2009, no one in the state will be allowed to have insurance with more than a $2,000 deductible or total out of pocket costs of more than $5,000. In addition, every policy in the state will be required to cover prescription drugs, a move that could add 5-15 percent to the cost of insurance plans.

In my paper on then-Governor Romney’s plan, I warned that the state’s new managed competition bureaucracy, the Commonwealth Health Insurance Connector Authority, would operate as a regulatory body, setting up just such a slippery slope to government control of health care. The more we see from Massachusetts, the more it looks like I was right.

America Ranks Only 14th in Property Rights Index

In an interesting new report, the Property Rights Alliance has published the first index measuring property rights. Not surprisingly, the report finds that nations with stronger protections of property rights also have more prosperous economies. It was discouraging to read, though, that America is tied for 14th place, behind welfare states such as Denmark, Sweden, and Germany (though the U.S. beat France):

…countries in the higher rankings of the IPRI are primarily advanced industrialized economies, particularly Western Europe (Scandinavia) and North America. Countries that show a weak performance with respect to property rights protection are African and Latin American nations, in addition to the Central European nations. … better performing countries (1st Quartile in ranking) enjoy, on average, a GDP per capita income of more than eight times their counterparts at the lower quartile of the Index. … citizens of countries in the top quartile in the IPRI ranking enjoy a per capita income that is more than seven times that of their counterparts in the bottom quartile. … the correlation between the IPRI rating and GDP per capita amounts to a value of eighty-nine percent.

Democratic Budget Threatens Repeal of Bush Tax Cuts and Adoption of Dorgan and Levin Anti-Tax Competition Bills

In a discouraging development, the Chairman of the Senate Budget Committee has crafted a budget that does not make the Bush tax cuts permanent. He implies that the tax cuts can be extended if other taxes are raised, and he specifically suggests that legislation attacking so-called tax havens could provide offsetting revenue. But these punitive and discriminatory bills would raise very little money (especially since they would force many American companies and entrepreneurs to reduce their efforts to compete in global markets). As the Wall Street Journal explains, Senator Conrad’s real goal is repealing the Bush tax cuts and imposing a huge tax hike on the productive sector of America’s economy:

Mr. Conrad has no intention of extending the Bush tax cuts… But Senate Democrats don’t want anyone to know this, at least not before the 2008 election. So Mr. Conrad says his budget revenue estimates “assume that Congress will take steps to counter the effects of the expiration of tax cuts in 2010 in a manner that does not add to the nation’s debt burden.” How so? Well, “this additional revenue can be achieved without raising taxes by closing the tax gap, shutting down illegal tax shelters, addressing tax havens, and simplifying the tax code,” he avers. …The 10-year revenue increase from repealing the Bush tax cuts is something like $2 trillion, according to Congress’s static-revenue models. Mr. Conrad is claiming that Congress will make up for all of that lost revenue by chasing down such illusions as the “tax gap,” which the IRS claims is the difference between the taxes people owe and what they pay. …All of this is really sleight-of-hand to disguise that Democrats are intent on repealing the Bush tax cuts. This would raise the tax on capital gains to 20% from 15%, more than double the tax rate on dividends to 39.6% from 15%, and sharply increase marginal tax rates at all levels of income. …The market fell 200 points on the day Mr. Conrad unveiled his magic act last week.

Why Won’t Al Gore Debate?

Former vice president and Oscar winner Al Gore is scheduled to testify to both House and Senate committees today about global warming. For the past few years Gore has traveled across America speaking to audiences that range from friendly to worshipful, from journalists in New York and Washington to actors in Hollywood. If he has ever faced skeptical questions, it hasn’t been reported.

We have several times invited the former vice president to present his famous slide show at the Cato Institute, in conjunction with a slide show prepared by Patrick J. Michaels, who takes a more benign view of climate change. Michaels is senior fellow in environmental studies at the Cato Institute and research professor of environmental sciences at the University of Virginia. He is the state climatologist of Virginia, a past president of the American Association of State Climatologists, and an author of the 2003 climate science “Paper of the Year” selected by the Association of American Geographers. His research has been published in major scientific journals, including Climate Research, Climatic Change, Geophysical Research Letters, Journal of Climate, Nature, and Science. He received his Ph.D. in ecological climatology from the University of Wisconsin at Madison in 1979. His most recent book is Meltdown: The Predictable Distortion of Global Warming by Scientists, Politicians, and the Media, which has been number one on Amazon’s global warming bestseller list for months at a time and has been reprinted twice this year.

Gore’s office has declined our invitations. If Vice President Gore is committed to public understanding of climate change, why will he not demonstrate to a Washington audience composed of both supporters and skeptics that his ideas can carry the day in a dialogue with a leading critic? He wiped the floor with Ross Perot; does he fear that the case for catastrophic climate change is not as strong as the case for NAFTA?

The invitation is still open. Mr. Vice President, please come to the Cato Institute and present your slide show to an audience of journalists and scholars with a knowledgeable climate scientist also on the dais.

K for Korruption

The Washington Post has been running a series on its website (Citizen K Street) on the life of Gerald Cassidy, the preeminent entrepreneur of federal budget earmarking since the 1970s. Here are a few thoughts:

- Cassidy is a liberal Democrat, but a much more important aspect of his character seems to be his insatiable quest for money, money, money.

- Rather than adding to the nation’s gross domestic product, Cassidy earned his fortune of about $125 million as the middleman in the forced transfer of wealth from taxpayers to state and local recipient groups willing to play the Washington game.  

- Annual revenues of registered lobbyists in Washington have increased from $100 million in 1975 to $2.5 billion by 2006.

- The word “conservative” doesn’t have any meaning when it comes to big government spending. The Post describes former Rep. Jamie Whitten as a “conservative Mississippi Democrat,” yet Whitten was a famous pork barrel spender. The Post story also captures a smiling Tom Delay and Roy Blunt–supposedly staunch Republican conservatives– at a party in honor of Cassidy and Associates’ 30-year record of lobbying for pork.   

- Cassidy pioneered earmarking for universities and other state and local institutions. His firm provides a very high return on investment for his clients. One client paid Cassidy $1.3 million in fees and was rewarded with a $29 million taxpayer-funded earmark. Another client paid Cassidy $15 million and received $106 million in earmarks. And in another case, a client paid Cassidy $1.2 million and received a $15 million earmark.

- Washington tends to attract sharp, aggressive, amibitious people like Cassidy, who want to become rich, and don’t seem to care about limited government, constitutional government, good government, or the broad public interest. 

- When you combine democracy with the tremendous entrepreneurial abilities of folks like Cassidy, and some of the members of Congress he serves, the result is a federal government that will spend about $3 trillion this year.   

DHS Privacy Committee Meeting Tomorrow

The DHS Data Privacy and Integrity Advisory Committee meets tomorrow (Mar. 21) at the Crowne Plaza Washington National Airport in Arlington. 

The morning agenda is heavy on REAL ID, and we’ll hear from Jonathan Frenkel, a Senior Policy Advisor at DHS who was one of the key officials responsible for writing the recently issued regulations.