Miss Kay Hagan is doing a poor job of defending the “merits” of ObamaCare to a mother who has sick children. In addition to her sick children, her and her husbands benefits have been cut down or eliminated in order to comply with ObamaCare.
Yet Miss Hagan insists on pushing for more European style socialism.
(Hat Tip: Culture War Notes)
That’s a line from a brief but astounding post by Kevin Williamson of NRO, which I’m reproducing in full here:
A little perspective from the debt commission:
“The commission leaders said that, at present, federal revenue is fully consumed by three programs: Social Security, Medicare and Medicaid. ‘The rest of the federal government, including fighting two wars, homeland security, education, art, culture, you name it, veterans — the whole rest of the discretionary budget is being financed by China and other countries,’ [Alan] Simpson said.”
Three programs — Social Security, Medicare, and Medicaid — consume 100 percent of federal revenue, and everything else is paid for with borrowed money. This is why we cannot balance the budget by cutting military spending, foreign aid, food stamps, etc. There is not going to be a serious project to address our deficit/debt problem without deep, painful entitlement reform, and the longer we wait to admit that fact and get going on it, the worse it is going to be.
So, who’s gonna grab that third rail? George W. Bush tried and got hammered — an example that few if any in Washington are eager to follow.
Indeed. I think if this is going to happen, it’s going to have to come from the people (tea parties, perhaps?), because it seems suicidal for any politician to take it on without considerable popular support.
There has been a fair amount of useless discussion among pundits and Obama administration officials about a Value Added Tax, a National Sales Tax, the mainstay of the crumbling welfare states in Europe. I say this discussion is useless, because Congress would never pass it, as the 85-13 vote in the Senate on an anti-Value Added Tax non-binding resolution indicates.
Today in the Washington Post Robert Samuelson explains why a VAT wouldn’t solve our budgetary woes:
The basic budget problem is simple. For decades, the expansion of Social Security, Medicare and Medicaid — programs mostly for the elderly — was financed mainly by shrinking defense spending. In 1970, defense accounted for 42 percent of the federal budget; Social Security, Medicare and Medicaid were 20 percent. By 2008, the shares were reversed: defense, 21 percent; the big retirement programs, 43 percent. But defense stopped falling after Sept. 11, 2001, while aging baby boomers and uncontrolled health costs keep retirement spending rising.
Left alone, government would grow larger. From 1970 to 2009, federal spending averaged 20.7 percent of the economy (gross domestic product). By 2020, it could reach 25.2 percent of GDP and would still be expanding, reckons the Congressional Budget Office’s estimate of President Obama’s budgets. In 2020, the deficit (assuming a healthy economy with 5 percent unemployment) would be 5.6 percent of GDP. To cover that, taxes would have to rise almost 30 percent.
A VAT could not painlessly fill this void. Applied to all consumption spending — about 70 percent of GDP — the required VAT rate would equal about 8 percent. But the actual increase might be closer to 16 percent because there would be huge pressures to exempt groceries, rent and housing, health care, education and charitable groups. Together, they account for nearly half of $10 trillion of consumer spending. There would also be other upward (and more technical) pressures on the VAT rate.
Does anyone believe that Americans wouldn’t notice 16 percent price increases for cars, televisions, airfares, gasoline — and much more — even if phased in? As for a VAT’s claimed benefits (simplicity, promotion of investment), these depend mainly on a VAT replacing the present complex income tax that discriminates against investment. That’s unlikely because it would require implausibly steep VAT rates. Chances are we’d pay both the income tax and the VAT, making the overall tax system more complicated.
- US Catholic Bishops: Executive Order Deal A Non-Starter:
- In deal with Stupak, White House announces executive order on abortion (Washington Post):
Resolving an impasse with anti-abortion Democrats over the health-care reform legislation, President Obama announced Sunday that he will be issuing an executive order after the bill is passed “that will reaffirm its consistency with longstanding restrictions on the use of federal funds for abortion,” according to a statement from the White House.
“I’m pleased to announce we have an agreement,” Rep. Bart Stupak (D-Mich.) said at a news conference announcing the deal.
- “I think we’re witnessing Bart Stupak write the obit for the concept of the “pro-life Democrat” – Kathryn Jean Lopez (National Review).
We’ve consulted with legal experts on the specific idea of resolving the abortion funding problems in the Senate bill through executive order. We know Members have been looking into this in good faith, in the hope of limiting the damage done by abortion provisions in the bill. We believe, however, that it would not be fair to withhold what our conclusion was, as it may help members in assessing the options before them:
“One proposal to address the serious problem in the Senate health care bill on abortion funding, specifically the direct appropriating of new funds that bypass the Hyde amendment, is to have the President issue an executive order against using these funds for abortion. Unfortunately, this proposal does not begin to address the problem, which arises from decades of federal appellate rulings that apply the principles of Roe v. Wade to federal health legislation. According to these rulings, such health legislation creates a statutory requirement for abortion funding, unless Congress clearly forbids such funding. That is why the Hyde amendment was needed in 1976, to stop Medicaid from funding 300,000 abortions a year. The statutory mandate construed by the courts would override any executive order or regulation. This is the unanimous view of our legal advisors and of the experts we have consulted on abortion jurisprudence. Only a change in the law enacted by Congress, not an executive order, can begin to address this very serious problem in the legislation.”
U.S. Conference of Catholic Bishops
Further analysis of the text of the order: Continue reading
It seems like one thing that nearly anyone on any side of the political spectrum should be able to agree on is that Senator Nelson extracting a provision for the federal government to foot the entire unfunded liability for Medicaid in the state of Nebraska (and for no other state) in perpetuity as the cost of his agreeing to support the current Senate health care bill compromise is reprehensible in the extreme.
One would like to think that such decisions would be made, in a Republic, based on a senator’s understanding of whether a bill was actually good for the country as a whole — not based on bribery. Senator Nelson should be ashamed of himself, and so should the Senate leadership which agreed to provide such a buy-off.
By a vote of 60-40 early this morning in the Senate, the Democrats, with not a Republican vote, voted to cede power to the Republicans in 2010. The Democrats thought they were voting to invoke cloture on the ObamaCare bill, but the consequences of the passage of this bill, assuming that it passes the House, will likely be to transform a bad year for the Democrats next year into an epoch shaping defeat. As Jay Cost brilliantly notes here at RealClearPolitics:
“Make no mistake. This bill is so unpopular because it has all the characteristics that most Americans find so noxious about Washington.
It stinks of politics. Why is there such a rush to pass this bill now? It’s because the President of the United States recognizes that it is hurting his numbers, and he wants it off the agenda. It might not be ready to be passed. In fact, it’s obviously not ready! Yet that doesn’t matter. The President wants this out of the way by his State of the Union Address. This is nakedly self-interested political calculation by the President – nothing more and nothing less.
[Updates at the bottom of this posting as of 3:03am CDT on AD 9-10-2009]
President Obama’s speech covered many topics, lets first layout our President’s plan:
I. Keep the health insurance you have now.
1. Pre-existing symptoms or disabilities no longer will disqualify anyone from coverage.
2. No spending caps set by insurance companies.
3. No drop in coverage in the middle of an illness.
4. Limit on out of pocket expense.
5. Minimal requirements of coverage.
II. Public Option & Exchange
1. When losing your job you have the Public Option if you can’t afford insurance.
2. Insurance exchange markets will be required for insurance companies to participate in.
3. Tax credits for small businesses.
4. In theory this will not lead to a government take over.
Hattip to Ed Morrissey at Hot Air for the above video which was produced by the Independence Institute. As Barabara Wagner learned, the Oregon Health Plan would pay for her to kill herself but will not pay for Tarceva to fight her lung cancer. But that’s just Oregon, maybe ObamaCare wouldn’t ration health care? Continue reading