AP filed this story to the tubes 1 hour ago.
WASHINGTON -
President Bush will propose a tax deduction of $7,500 for individuals and $15,000 for families regardless of whether they buy their own health insurance or receive medical coverage at work. [UPDATE:actual SOTU text below fold]
The proposal, to be announced Tuesday in his State of the Union address, is aimed at giving the uninsured an incentive to purchase a medical plan.
There's some sports analogy under the headline, I'm sure. The key strategic point is that Shrub LLP recovered the ball -- while the House awaits Senate affirmation of minimum wage and House ethics reform, not to mention the unitary asshole's signature.
Putting aside the fact that the unitary asshole continues to suck dry the treasury, American voters will be hard pressed to recognize two facts:
- Tax relief is no substitute for single-payer universal health care;
- and Tax relief is a GOP bribe to forgive 12 years of irresponsible, market-driven government,
when they only hear the words "tax relief." GOP candidates might like that pigskin enough to kick it down the road to '08.
Form 1040 details aren't described in the article. To me, this suggests that an immediate straight line deduction is in the hopper. The deduction is a bait 'n' switch offer. In review, the unitary asshole's pet project, Health Savings Accounts (HSA), has not faired well under scrutiny by any government agency interested in benefits distribution; it has performed well as a tax shelter option for upper-middle-class households. It has not faired well politically as a useful policy model for GOP representatives in election campaigns, because the base holds no a majority of the upper-middle-class. But in the long run, once households across the income spectrum become accustomed to the deduction, applicable uses of the deduction could easily become a source for IRS restrictions tied to the finance and insurance sector lobbyists who will never go away.
Shrub LLP feints on Middle-East slaughter. Redirects #2 national concern.
The new "New Way Forward" proposal is bifurcated: tax relief will deliver households as well as state legislatures contemplating like models of CA and MA "universal health care" reform to GOP candidates in '08. These states' models require its citizens to purchase commercial health insurance coverage by any means necessary or be penalized. Implementation or public acceptance of proposals thus far have been complicated by projected shortfalls from taxable small business revenues as well as the classification of small businesses.
In his nationally televised speech, Bush also will announce steps to take some federal money now going to hospitals and other facilities and give it to states for programs to reduce the number of uninsured people.
Thus the proposal bolsters two ideological barriers to public examination of fundamental health care industry. And what does this industry, the US health care "system," look like? It looks like racketeering.
- monopoly protection (legislated)
- minimal buyer protection (legislated)
- fragmented buyer preferences (ideologic)
- price collusion (enforced)
- asymetries of information (systemic opportunism)
- welfare hostility (ideologic)
Shrub LLP finances states with funny money -- non-existant federal funds. Shrub LLP provides the disincentive for employer-based and subsidized non-cash compensation to employees like health insurance --regardless of firm size. "Health care benefits provided by companies are currently exempt from income and payroll taxes," notes the article. If firms continue to subsidize employe health insurance benefits, both may be taxed on expenses which exceed the deductible.
The ductible will not positively impact competition among insurers or save consumer/patients money. First, employers will continue to clear premium prices according to criteria negotiated by firm benefits managers. Second, standardization in the workplace market provides disincentives for insurers to differentiate employer products from those offered self- and uninsured buyers.
House Ways and Means Committee Chairman Charles Rangel, D-N.Y., is not embracing the idea.
"This is a dangerous policy that ultimately shifts cost and risk from employers to employees and could result in a higher number of uninsured," Rangel said. "The new, Democratic majority in Congress is interested in relieving, not increasing, working families' tax burden."
This top-line assessment of the Shrub LLP proposal sums up the moral hazard about to be unleashed on the nation. So take heed, when Rangel is out of the box. You've got to get up pretty early in the morning to best a "black" man with his tenure in the bullshit-detecting department of government works.
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Addendum: As details of Shrub LLP's health care proposal become available through MSM outlets, kossacks react.
sailmaker transforming the insurance industry
California Nurses Shum transforming the insurance industry
fishoutofwater his Big Lie about Health Costs
SanJoseLady Taxes on Middle Class
mcjoan Health care for All(?)
DrStevenB employers insure kossacks
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Healthcare-NOW Medicare for all
Call on Speaker Nancy Pelosi and Congressman Charles Rangel to hold hearings on the United States National Health Insurance Act, H.R. 676, no later than 4 April 2007. H.R. 676 was introduced by John Conyers, Dennis Kucinich, Jim McDermott, and Donna Christensen two years ago and affirmed in subsequent sessions. During the 109th (Jan, 2006), Ted Kennedy introduced S.2229, the "Medicare for All Act", with no co-sponsors.
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Text of 2007 State of the Union Address, delivered 23 January
First, I propose a standard tax deduction for health insurance that will be like the standard tax deduction for dependents. Families with health insurance will pay no income or payroll taxes on $15,000 of their income. Single Americans with health insurance will pay no income or payroll taxes on $7,500 of their income. With this reform, more than 100 million men, women, and children who are now covered by employer-provided insurance will benefit from lower tax bills.
At the same time, this reform will level the playing field for those who do not get health insurance through their job. For Americans who now purchase health insurance on their own, my proposal would mean a substantial tax savings — $4,500 for a family of four making $60,000 a year. And for the millions of other Americans who have no health insurance at all, this deduction would help put a basic private health insurance plan within their reach. Changing the tax code is a vital and necessary step to making health care affordable for more Americans.
My second proposal is to help the States that are coming up with innovative ways to cover the uninsured. States that make basic private health insurance available to all their citizens should receive Federal funds to help them provide this coverage to the poor and the sick. I have asked the Secretary of Health and Human Services to work with Congress to take existing Federal funds and use them to create "Affordable Choices" grants. These grants would give our Nation’s Governors more money and more flexibility to get private health insurance to those most in need.
The president of the United States, legislating price discrimination for health insurance marketers and paid with federal tax receipts: this is another impeachable offense.