A tax on insurance is a tax on the insured is a tax on the very people President Obama promised not to tax.

Max Baucus has joined Chuck Schumer, Jay Rockefeller and others in endorsing a proposal to tax existing health insurance plans to pay for coverage for the uninsured. Exercise for the reader: Show why the following violates everything we know about the economics of taxation:

Senator Schumer:

“The health insurance industry should pay its fair share of the cost because it stands to gain over 40 million new consumers under health reform legislation.”

Senator Rockefeller:

“[The fees are justified because insurers are] rapaciously, greedily and unstoppably making money by underpaying the patient, by underpaying the provider and by overpaying themselves.”

Comments (8)

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  1. Elaine says:

    Yes, only doctors, health insurance companies, oil companies, and of course, conservatives are greedy and everyone except liberals should pay their fair share.

    The ugly truth is Obama and the Democrats will find any means possible to confiscate more of people’s wealth for one purpose only-to make as many people dependent on government handouts as possible. They are purposely looking for ways to destroy the economy just for this purpose. That is what socialist’s do and they are all socialist’s.

  2. Devon Herrick says:

    There’s an old concept in economics… If you want to discourage an activity, tax it. If you want to encourage an activity, subsidize it. Baucus wants to subsidize health coverage for moderate income people and then tax the private companies that underwrite insurance (which pass the tax on to people who have private insurance). In other words, Democrats love health coverage but hate private insurers. This is consistent with accusations that the Democratic Leadership in Congress really wants a government-run health care system, devoid of private insurers.

  3. Bruce says:

    Expect more taxes on the people who Obama promised never to tax.

  4. Anna says:

    Obama is a communist everyone around him is known to be a socialist or communist. Just start out looking up his mentor when was a young boy. He said Frank Marshall Davis is like a father to him. If you look up the different links you find alot of information on Obama. He has a plan to take the power away from us. Our rights and our freedom are going to be taken away. His plan like any communist leaded is to destoy the country.So they have control.Wake up AMERICA before its to late. GOD BLESS

  5. Elida Vom Baur says:

    Very interesting, I need to learn more.

  6. Pat says:

    I agree totally with you Anna. What you say is 100% true, and passing this health care bill is going to really hurt a very fragile economy which is exactly what Obama wants to do. Then, he can claim yet another crisis and take over more of the economy after he destroys one of the best health care systems in the world. Not one thing in this health care bill is really going to fix any of the problems, but it will give these marxists in Washington unbelievable power and access to almost every bit of personal information on every single American to use against the very people they are supposed to serve if they so choose (and I believe they will do exactly that). I am heartsick for our country and what is being done to her.

  7. Jack Sussman says:

    I agree with all the replies and am heartened to find others who think as I.

  8. Susan says:

    I am on Medicare due to a health condition I have. I am not only too young for Medicare
    but most of the$ I get goes to a Supplemental plan that I got through an Arrp . And with this program I was required to be enrolled in the their whole program which I also pay for.!!! I quit because it cost soo much and covered nothing. The only thing good about it was I got in the prescription drug program. I get the lowest rate because I am low income