Posts Tagged ‘$100 billion’

Democrats KNOW Their ‘You Can Keep Your Current Health Coverage’ Line Is A Lie

September 27, 2009

I’m sure that you’ve heard Barack Obama, congressional Democrats, and their media propagandists say over and over again that if you like your current health coverage, you can keep it.

Last Thursday, as the Senate Finance Committee was marking up the Baucus version of the bill, Sen. Orrin Hatch tested the sincerity and integrity of the Democrats by offering this incredibly simple amendment:

The purpose of this amendment is simple. If the secretary of Health and Human Services certifies that more than 1 million Americans would lose the current coverage of their choice because of this bill, then this bill would not go into effect.

It seems like a very, very simple but perfect amendment for those of us who have integrity. This amendment is simply trying to safeguard President Obama’s pledge to the American people, you’ll get — that you will get to keep what you have.

And the Democrats failed the test.

Every single Democrat in the Finance Committee voted against it.  Every single one.

As Powerline put it:

One of President Obama’s mantras with regard to the Democrats’ health care proposal (whatever it turns out to be) is that if you like your present health insurance coverage, you will get to keep it. More recently, when the fraudulent nature of that pledge was revealed, he changed the formula to “the bill won’t require you to lose your coverage.” That’s right; it won’t require you to lose your coverage, it will just cause you to lose your coverage.

Don’t think for a second Democrats and President Obama don’t know what a pack of liars they are.

Last Sunday, Barack Obama proved that he is a liar by refusing to call what is clearly a tax a tax.  And Obama’s own hometown newspaper proves the obvious.

Last Tuesday, the Democrat-approved Congressional Budget Office laid out Obama’s lie that Medicare would not be cut:

Congress’ chief budget officer on Tuesday contradicted President Barack Obama’s oft-stated claim that seniors wouldn’t see their Medicare benefits cut under a health care overhaul.

The head of the nonpartisan Congressional Budget Office, Douglas Elmendorf, told senators that seniors in Medicare’s managed care plans could see reduced benefits under a bill in the Finance Committee.

The bill would cut payments to the Medicare Advantage plans by more than $100 billion over 10 years.

The Democrats’ shocking deceit – and Barack Obama’s own personal deceptions and lies – are incredible.  They will literally say ANYTHING to get their terrible plan passed.

The biggest Democrat lie of all is the one that they tried to use to justify their takeover of health care in the first place: that they could cover nearly 50 million more people with better care while saving money.  People with common sense knew it was a blatant lie even before all the various iterations and deceptions came out.  It was simply transparently false from the outset.

Please don’t trust these liars to take over 1/6th of the U.S. economy during a period when the economy is already in deep trouble.  And please don’t turn the lives of seniors over to a plan that will literally kill many of them.

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Obama’s Class-Warfare Approach Will Harm Country

July 30, 2008

Barack Obama can fix everything just by taxing the rich. He can massively increase social spending simply by taxing the bejeebers of the evil and greedy rich. You CAN eat your cake and have it too!!!

There’s only one thing wrong (apart from the whole Marxist class warfare thing) with his plan:

Obama foolishly believes that raising taxes on the rich will be a panacea so that he can engage in all kinds of massive social programs (to the tune of $874 billion in new spending). He plans to raise $100 billion by increasing taxes on the rich. What he doesn’t understand is that the rich will change their behavior, begin sheltering their money, and suddenly government will see its stockpile of golden eggs shrink, and keep shrinking. Obama is counting on the rich acting exactly as they have been acting as a result of the Bush tax cuts. But he simply doesn’t understand that that isn’t the way real life actually works.

In today’s paper there was an Associated Press article discussing the federal budget deficit that contained the following statement on taxes vis-à-vis revenues.

McCain promises to renew the full roster of Bush tax cuts enacted in 2001 and 2003 and add many more for businesses and upper income people who pay the alternative minimum tax. The Bush tax cuts expire at the end of 2010 and renewing them would soon cost well over $200 billion a year. Eliminating the alternative minimum at the same time would cost almost as much.

The sentence “The Bush tax cuts expire at the end of 2010 and renewing them would soon cost well over $200 billion a year” is completely true – if human beings are simply robot idiots. It’s completely false if people react to changing environmental conditions by changing their behavior. The thing is that people AREN’T robot idiots and they DO change their behavior to avoid negatives and take advantage of positives.

The rich don’t think in stupid, stagnant terms anymore than anyone else does.

Think of the recent high gas prices. Americans have overwhelmingly altered their behavior as a result of the high gas prices, driving nearly 10 billion fewer miles compared to last year. As the price of gas became more and more expensive, Americans reacted by altering their behavior. And if the price of gas goes back down, people will respond by increasing their driving.

And the rich do the same thing. They react to high taxes by sheltering their money, and they react to lower taxes by increasing their investments and growing their business.

The easiest example of this is the luxury tax that Democrats stupidly applied to items like yachts some years back. They saw only the additional revenue they would obtain by “soaking the rich,” but the rich – faced with a 10% additional tax – simply stopped buying yachts and the result nearly destroyed the boating industry. You don’t get rich by being stupid with money. But Democrats think entirely in class-warfare terms, and are simply incapable of learning this lesson.

What liberals – both in politics and in the media – do is look at the tax revenues, put in the higher tax rates they prefer, and calculate that they would make X.XX% more if the tax rate were higher. But that’s simply false, and it has been factually and historically proven false.

The Bush tax cuts produced higher than projected revenue – to the tune of a 35% growth between 2003 and 2006.  In comparison, during the height of the Clinton economy between 1997 and 2000 – when he didn’t have 9/11 (and the subsequent hit to the economy) and we didn’t have wars in Afghanistan and Iraq dragging us down, federal receipts still rose only 28.2%.

A July 13, 2005 New York Times story titled “Sharp Rise in Tax Revenue to Pare U.S. Deficit” said:

The big surprise has been in tax revenue, which is running nearly 15 percent higher than in 2004. Corporate tax revenue has soared about 40 percent, after languishing for four years, and individual tax revenue is up as well.

Most of the increase in individual tax receipts appears to have come from higher stock market gains and the business income of relatively wealthy taxpayers. The biggest jump was not from taxes withheld from salaries but from quarterly payments on investment gains and business earnings, which were up 20 percent this year.

A Treasury Department analysis found that the tax cuts prompted the creation of jobs and increased the gross domestic product. It points out that:

Lower tax rates enable workers to keep more of their earnings, which increases work effort and labor force participation. The lower tax rates also enable innovative and risk-taking entrepreneurs to keep more of what they earn, which further encourages their entrepreneurial activity. The lower tax rates on dividends and capital gains lower the cost of equity capital and reduce the tax biases against dividend payment, equity finance, and investment in the corporate sector. All of these policies increase incentives to work, save, and invest by reducing the distorting effects of taxes. Capital investment and labor productivity will thus be higher, which means higher output and living standards in the long run.

Prior to the Reagan Revolution in 1981, the top marginal federal income tax rate was 70% (it is currently 35% under President Bush). At the 70% rate, the top 1% paid only 19% of the federal income tax burden, and the top 5% paid 37%. With the tax rate cut in half, the top 1% are paying more than twice as much of the total tax burden – nearly 40% – and the top 5% are paying nearly 60%.

And not only do the rich pay a higher percentage of their wealth in taxes under the lower taxes of the Bush plan, but they pay a higher ratio of their wealth in taxes than they did when the rates were higher.

If Obama counts on wealthy Americans to act the same with punitive tax rates that they do with low tax rates, he’s simply mistaken. If he raises the rich’s taxes, they will shelter their money and figure out ways to pay less and less. Even John Edwards and John Kerry sheltered their money to avoid paying taxes. And they’re more wonderful than anybody!

And when Obama can’t pay for his $874 billion extra spending by taxing the rich, he’ll come after you.

Don’t fall for the class-warfare strategy. It didn’t work for the Soviet Union, and it won’t work for the United States.

Low taxes is good for ALL the people by providing incentives for business investment and economic growth. The key to any budget is to live within one’s means, and not spend more than one takes in.

An Obama presidency would fail on both counts.