This Reuters headline says it all: “Cigna CEO: Don’t repeal U.S. health law.”
Cato at Liberty
Cato at Liberty
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Health Care
Tax Cuts vs. Government Checks … NRO Conclusion and Correction
VerBruggen signs off on the tax cut/government check debate by doubling down on the core issue; he believes that there is no meaningful difference between government spending and a tax cut. I will quote him in full: “If some libertarians want to keep insisting that there’s a meaningful difference between (A) the government spending $500 on something and (B) a person “donating” $500 to that thing and then getting a $500 break on his taxes in return, there’s nothing I can do to stop them.”
In this, he has the company of the 9th Circuit and the Progressive wing of SCOTUS.
VerBruggen has also rightly asked for a correction to one of the numerous quotes I pulled from his blog posts on tax cuts vs government spending. I thank him sincerely for reading through to the end of my interminable post. The correct quote is below, with the omitted, qualifying language in italics, a new note on charitable giving and government spending, and my otherwise unchanged commentary:
He insists that “much (most?) deducted charity spending does not offset government spending in the slightest,” yet also agrees that “voucherizing the tax subsidies for charity would remove the incentive to donate” to the range of charitable and social welfare activities the government supports. [Note: There is much evidence that government spending on “charity” crowds out charitable giving. And most, not to mention much, charitable giving in the U.S. is devoted to health, educational, social welfare and religious organizations which in turn focus on assistance to the poor, health and educational activities. Needless to say, the government is deeply involved in health, education and welfare spending. See the index of Arthur Brooks’ fascinating book, Who Really Cares, for more details.]
Charity does not reduce pressure on the welfare state? The billions of dollars donated to health, education, welfare … these offset nothing in the public sector? In the absence of tax expenditures for employer-provided health care, how likely is it that the U.S. would have retained a relatively robust private medical market?
The charitable deduction allows the people who earned the money our governments spend on public “charity” to keep some portion of what the government would otherwise have spent on government “charity” or some other wasteful project.
If VerBruggen is concerned that the tax burden will marginally increase on some citizen as the result of another’s charitable deduction then the answer is to balance that lost revenue with a reduction in government “charity,” not to eliminate the deduction.
Perhaps most concerning is VerBruggen’s breezy assumption that all income belongs to the government. He insists that “taxpayer money is already allocated” in the form of deductions for charity, and therefore that “voucherizing the total amount of the deductions wouldn’t change that …”
Really? Tax credits and deductions belong to the taxpayer who earned them. They are not government funds; that is a legal and logical statement. To insist otherwise is to argue that all income is the governments, and what it does not claim is ours. The money that a taxpayer spends is HIS money, not the government’s.
And, as is noted above, voucherizing charitable deductions will convert a huge portion into direct welfare payments and eliminate the core of the charitable act; giving away one’s own money.
Wishful Thinking about ObamaCare Investigations
NPR found two Republicans who caution House Republicans that their efforts to investigate ObamaCare could “backfire.”
But all those hearings could also have the opposite effect — giving the administration a chance to make its case in favor of the law, a case that often got drowned out during the election campaign.
“The next round of this, while there will continue to be the broad sloganeering on both sides, will presumably get a little bit more into the detail,” says Martin Corry, a health care lobbyist and former official at the Department of Health and Human Services during the Bush administration. “So if you’re a family with a 22-year-old still in college, you may not want to see that provision [that lets grown children stay on their parents’ health plans] repealed.”
… Former Republican Sen. Dave Durenberger of Minnesota says he thinks the Democratic-led Senate could try to dampen the House repeal efforts by holding a series of hearings of its own.
Let me see if I understand. If House Republicans hold hearings, it will be a boon to ObamaCare. Even though House and Senate Democrats stoutly refused to hold such hearings. If House Republicans hold hearings, sloganeering will give way to detail. And if House Republicans hold hearings, ObamaCare supporters will finally be able to get their message out — something they were unable to do while they controlled both chambers of Congress and the executive branch.
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ObamaCare Takes a Shellacking
It wasn’t just the party of ObamaCare or its champion that took a “shellacking” at the polls yesterday. The law took a shellacking as well. One pollster reports:
This election was a clear signal that voters do not want President Obama’s health care plan. Nearly half (45%) of voters say their vote was a message to oppose the President’s plan.…
Arizona and Oklahoma passed constitutional amendments designed to block ObamaCare’s individual mandate. Many new governors either plan to join the 22 states already challenging ObamaCare in court, or to block its implementation in other ways. Congressional Republicans appear determined to use every tool in their arsenal to repeal it.
President Obama is striking a conciliatory note, saying he is open to “tweaks:”
If the Republicans have ideas for how to improve our healthcare system, if they want to suggest modifications that would deliver faster, more effective reform… I am happy to consider some of those ideas.
There is room to doubt his sincerity. The Washington Post has reported that when President Obama begins a sentence with, Let me be clear, it is “a signal that what follows will be anything but.” Obama has likewise claimed open-mindedness and flexibility when his behavior exhibited the opposite qualities. (Remember how last year’s White House summit on health care was all about gathering “the best ideas.”)
Yet with a firm conviction that facts and science and argument still matter, I resubmit to President Obama this Cato Policy Analysis: Yes, Mr. President: A Free Market Can Fix Health Care. In fact, a free market is the only thing that will. But a reasonably free market is impossible with ObamaCare still on the books.
I doubt the president will read it. But Republicans should. They seem pretty solid on Repeal. They’re weaker on Replace.
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Ballot Initiatives Provide Underappreciated Election-Night Victories
Last week, I highlighted nine ballot initiatives that were worth watching because of their policy implications and/or their role is showing whether voters wanted more or less freedom. The results, by and large, are very encouraging. Let’s take a look at the results of those nine votes, as well as a few additional key initiatives.
1. The big spenders wanted to impose an income tax in the state of Washington, and they even had support from too-rich-to-care Bill Gates. The good news is that this initiative got slaughtered by a nearly two-to-one margin. I was worried about this initiative since crazy Oregon voters approved higher tax rates earlier this year. In a further bit of good news, Washington voters also approved a supermajority requirement for tax increases by a similar margin.
2. Nevada voters had a chance to vote on eminent domain abuse. This is an initiative that I mischaracterized in my original post. The language made it sound like it was designed to protect private property, but it actually was proposed by the political elite to weaken a property rights initiative that the voters previously had imposed. Fortunately, Nevada voters did not share my naiveté and the effort to weaken eminent domain protections was decisively rejected. This is important, of course, because of the Supreme Court’s reprehensible Kelo decision.
3. California voters were predictably disappointing. They rejected the initiative to legalize marijuana, thus missing an opportunity to adopt a more sensible approach to victimless crimes. The crazy voters from the Golden State also kept in place a suicidal global warming scheme that is driving jobs out of the state. The only silver lining in California’s dark cloud is that voters did approve a supermajority requirement for certain revenue increases.
4. Nearly 90 percent of voters in Kansas approved an initiative to remove any ambiguity about whether individuals have the right to keep and bear arms. Let that be a warning to those imperialist Canadians, just in case they’re plotting an invasion.
5. Arizona voters had a chance to give their opinion on Obamacare. Not surprisingly, they were not big fans, with more than 55 percent of them supporting an initiative in favor of individual choice in health care. A similar initiative was approved by an even greater margin in Oklahoma. Shifting back to Arizona, voters also strongly rejected racial and sexual discrimination by government, but they narrowly failed to approve medical marijuana.
6. Shifting to the local level, San Francisco, one of the craziest cities in America rejected a proposal to require bureaucrats to make meaningful contributions to support their bloated pension and health benefits. On the other hand, voters did approve a proposal to ban people from sleeping on sidewalks. Who knew that was a big issue?
7. Sticking with the ever-amusing Golden State, voters unfortunately eliminated the requirement for a two-thirds vote in the legislature to approve a budget, thus making it even easier for politicians to increase the burden of government spending. The state almost certainly is already on a path to bankruptcy, and this result will probably hasten its fiscal demise. Hopefully, the new GOP majority in the House of Representatives will say no when soon-to-be Governor Brown comes asking for a bailout.
8. The entire political establishment in Massachusetts was united in its opposition to an initiative to to roll back the sales tax from 6.25 percent to 3 percent, and they were sucessful. But 43 percent of voters approved, so maybe there’s some tiny sliver of hope for the Bay State.
9. Louisiana voters approved an initiative to require a two-thirds vote to approve any expansion of taxpayer-financed benefits for government employees. With 65 percent of voters saying yes to this proposal, this is a good sign that the bureaucrat gravy train may finally be slowing down.
At the risk of giving a grade, I think voters generally did a good job when asked to directly make decisions. I give them a solid B.
‘What Can We Get Away With?’
A New York Times account, based on an open-records request, sheds light on how Mayor Michael Bloomberg’s famously nannyish health department makes up its mind how far to go in food-scare advertising. In particular, a proposed YouTube campaign to scare consumers away from sweetened sodas resulted in
a protracted dispute in the department over the scientific validity of directly linking sugar consumption to weight gain — one in which the city’s health commissioner, Dr. Thomas A. Farley, overruled three subordinates, including his chief nutritionist.
Some highlights:
- “The scientists, she said [nutritionist Cathy Nonas], ‘will make mincemeat of us.’”
- “‘Basic premise doesn’t work,’ Dr. Michael Rosenbaum, a professor of pediatrics and clinical medicine at Columbia”
- “‘The science [i.e., efforts to be more accurate and precise in conveying the science] absolutely weakens our potential for mass distribution,’ [campaign manager Sabira] Taher wrote.”
- “‘I think this is broad enough to get away with,’ [Nonas] wrote [of the final video].”
Isn’t it comforting to think that the city administration of New York — and its federal counterpart, staffed by very similar sorts of activist officials — are also in charge of regulating private advertising of food and many other products to make sure such ads are fair and not misleading?
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NPR Story Was Hardly Biased, but the Headline?
Today’s NPR story, “Health Law Hardly At Fault For Rising Premiums,” was much fairer than its headline (and the sub-heads, if that’s what we call them). ObamaCare is “hardly at fault for rising premiums?” Really? The story quotes an insurance-industry flack who well establishes what the Obama administration’s own regulations confirm: ObamaCare will be a major driver of premium increases for some health plans. A sub-head calls such claims “misinformation.” Oh? The article does more to bolster those claims than the administration’s flack does to knock them down. A more accurate headline would have been, “Health Law at Fault for Rising Premiums? In Some Cases, Yes.”
One wonders whether, in some posh Versailles salon, there’s an editor who already knows what the headline should be — never mind what the article says.