You Mean Government Health Care Isn’t Free?
In the June 2009 issue (No. 57) of the Cato Institute’s “Tax & Budget Bulletin," Michael Tanner and Chris Edwards ask whether President Obama will “raise middle-class taxes” to pay for “a big expansion in federal health care spending” while “Democratic leaders are scrambling to find ways to pay for it.” Tanner and Edwards note that:
“Obama has also made strong promises that he won’t raise any taxes on lower- and middle-income Americans. Tax increases are a bad idea in general, but the Democrats are finding out that there is no way to fund their vision of expansive government health care without walloping average families with higher tax burdens.”
Some of the middle-class tax increases under consideration by the Democrats to fund health care are discussed” by Tanner and Edwards. The increases come from the U.S. Senate Finance Committee’s May 20, 2009 report, “Financing Comprehensive Health Care Reform.” The tax increases discussed in the "Tax & Budget Bulletin" include:
- Taxing Employer-Provided Health Insurance
- Eliminating HSAs and FSAs
- Limiting the Deductibility of Medical Expenses
- Alcohol and Beverage Taxes
- Higher Corporate Taxes
“In sum, expanding government health care will likely involve huge tax increases on the middle class. Aside from the tax options discussed above, there has also been talk of using revenues from a cap-and-trade global warming plan to fund health care. Obama’s budget included an $80 billion per year revenue increase for cap-and-trade, and economists calculate that the relative burden of such a plan would be far greater on lower-income than higher-income families. Thus, as Americans consider the current health care debate in Congress, they should remember the words of humorist P.J. O’Rourke: “If you think health care is expensive now—just wait until it’s free.” (emphasis added)
The following William Warren cartoon is used with permission:
