The Worst Bill Ever

[MrsSmith]

http://www.kaiserhealthnews.org/Columns/2009/November/110909Goodman.aspx

The Worst Bill Ever

John Goodman, President and CEO of National Center for Policy Analysis

Nov 09, 2009

Prior to last Saturday’s vote, The Wall Street Journal aptly called the House bill “the worst bill ever.” The bill is enormously expensive, but it is full of perverse incentives – an issue already plaguing our health care systems.

For individuals, the government will tell you what minimum insurance coverage you have to buy, where you must get it and what premium you will have to pay. Refusing to buy this insurance will result in a fine (tax) equal to 2.5 percent of your income. If you don’t pay the fine, you could go to jail.

The government will also tell your employer what type of insurance coverage the company must provide; and companies failing to provide it will face a tax equal to 8% of your wage income. Nominally, employers will be required to pay two-thirds or more of the cost. However, economic theory teaches — and empirical evidence confirms — that employee benefits and labor taxes are completely borne by workers themselves in the form of less take home pay. Thus, the combined penalty workers face for failure to insure is 10.5 percent of income.

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