What, Me Worry?
The number of Americans who pay federal income taxes has been shrinking every year, with a recent report suggesting that less than half of American households owed federal income taxes in 2009. One of the key components of ObamaCare, tax subsidies to purchase federally approved health insurance, will substantially increase the number of people who are not paying for government services and thus have a lower incentive to be concerned about record-breaking government spending.
That’s the whole problem. Millions of Amercians have no reason to worry. And With Obama Care, there will be millions more of them.
I believe the plan is for the rich to pay for all these benefits we’re providing for ourselves out of the public treasury.
After the generous exchange subsidies segment labor market into low and high wage firms, more than half of Americans will be receive far more in government services than they pay for. The other half of Americans (those paying taxes) will pay far more for government services than they receive. You could name this the New American Socialism — or what I’ve referred to as Soft Socialism. Unlike other forms of socialism, the government doesn’t take control of the means of production. It merely regulates the means of production to act in the way the government wants industry to act. The government doesn’t provide the jobs and set wages. Rather, the government picks specific areas for intervention. Progressive taxation funds Social Security, Medicare, Medicaid, Food Stamps, child care, indigent medical care and health insurance subsidies (slated to take effect in 2014). This has the effect of reallocating resources and transferring income from rich households to poor households. A blog post from a few months ago illustrated that some low-income American families get nearly half of their income from government transfers.
This is not good.
This is the main thing the founding fathers feared when they feared about democracy.