IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Runaway Train To Less Freedom, Higher Taxes And Rationed Care

IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Runaway Train To Less Freedom, Higher Taxes And Rationed Care
President Obama and the Democratic leadership are trying to ram a medical insurance bill through Congress in record speed, before anyone can get a good look at it. This 1,000-page monstrosity was released last Tuesday. The president wanted to see voting start by Thursday.

The House bill would increase federal spending, increase taxes, increase debt, increase health costs, increase unemployment, reduce wages, reduce American competitiveness and provide nothing to anyone until 2013.

The bill reminds me of Winston Churchill's line: "Never . . . was so much owed by so many to so few." Under this bill, the vast majority of Americans would owe a great deal throughout the foreseeable future — paid directly to the IRS or in kind — while a comparatively small number would benefit in a meaningful way.



Job Losses

The president's runaway-train approach is the same one he used with the economic "stimulus" package. On the very day the House health bill was released, newspapers reported the Treasury Department's announcement that we have amassed our first one-year deficit of $1 trillion — and we have accomplished this in just six months. If the $1.2 trillion House bill becomes law, that record likely won't last for long.

The three central problems in American medical insurance are the rising costs of care, the deficit spending resulting from the rising costs of Medicare and Medicaid, and the number of uninsured.

The House bill does nothing to deal with costs, would increase deficits and would apply a multitude of new taxes to pay for those who are uninsured.

The bill contains a pay-or-play provision that would require all but the smallest businesses to provide health insurance or else pay a fine equal to 8% of payroll.

The White House's own internal estimates — based on a model developed by Council of Economic Advisors Chairwoman Christina Romer — say this would cost employers $300 billion and would cost workers 5 million jobs.

Hide Those Dollars

The bill would increase income taxes by $583 billion. The White House says only the rich would be taxed. The truth is, this would be a tax on job creation. More than half of all those taxed would be small-business owners, and the taxes would be substantial.

The White House projection that 5 million jobs would be lost doesn't even factor in the adverse effects of this tax, but money taken from the pockets of job creators inevitably leads to pink slips for employees.

Even the Washington Post editorial board says "there is no case to be made" for this "ad hoc" and "unrealistic" tax. The Post notes the tax would encourage the wealthy to hide their money rather than make productive investments, and it would make it harder to tap the rich's incomes "if and when Congress and the Obama administration get serious about the long-term federal deficit." The Post concludes this "is bad policy any way you look at it."

In addition, the bill would impose a 2.5% penalty — or tax — on those who remain uninsured. So if you don't feel you can afford health insurance, you'll get to send money to the IRS instead. This is sort of the opposite of having your cake and eating it too.

The bill also mandates that employers offer health plans with greater benefits.

As the Congressional Budget Office notes, employers will pass along the costs of those increased benefits to workers — by paying lower wages.

Some people will presumably be happy having more money taken out of their paycheck to pay for more medical benefits. But shouldn't people have the choice? Some people would probably like to be able to pay their rent, not just their doctors.

The House bill isn't about leaving decisions to the people. It's about funneling money and power to Washington. This is a government takeover of health care, and the only clear winner is the Washington establishment.

In pushing for such a radical bill, the Obama administration and congressional leaders are leaving moderate Democrats and the American people behind.

A recent poll indicates that while only 22% of Americans strongly favor the Democrats' medical insurance plan, 38% strongly oppose it — and the number of people strongly opposed is rising.

In the wake of the House bill's release, that number is sure to rise further.

Not All Bleak

That's the one bright spot. More and more Americans are realizing that ObamaCare is the ticket to higher taxes, higher deficits, higher health costs, reduced wages, reduced American competitiveness, reduced freedom and rationed care.

Reason and sobriety can still take hold and beat back this attempt to impose government-run medical care on the American people. The box score is not yet printed. Rather, the ballgame is just under way.