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Obama’s $1 Trillion Free Health Care Plan

From an overjoyed Washington Post:

Obama Proposes $634 Billion Fund For Health Care

Aides Call Money a ‘Down Payment’ Toward Universal-Coverage Efforts

By Ceci Connolly
Thursday, February 26, 2009; A01

President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion.

The "reserve fund" in the budget proposal being released today is Obama’s attempt to demonstrate how the country could extend health insurance to millions more Americans and at the same time begin to control escalating medical bills that threaten the solvency of families, businesses and the government.

Obama aims to make a "very substantial down payment" toward universal coverage by trimming tax breaks for the wealthy and squeezing payments to insurers, hospitals, doctors and drug manufacturers, a senior administration official said yesterday.

Embedded in the budget figures are key policy changes that the administration argues would improve the quality of care and bring much-needed efficiency to a health system that costs $2.3 trillion a year

About half the money for the new fund would come by capping itemized tax deductions for Americans in the top income bracket. The proposal, which administration officials characterize as a "shared-responsibility issue," would reduce the value of tax deductions for families earning more than $250,000 by about 20 percent, according to administration documents.

Nearly one-third of the money would be generated by eliminating subsidies that the government pays insurers that sell Medicare managed-care plans. Instead, the Medicare Advantage plans would be put under a competitive bidding process, for a savings of $175 billion over the next decade.

"The administration believes it’s time to stop this waste," according to the documents

"This is the first step towards getting health-care reform done this year," White House domestic policy adviser Melody C. Barnes told allies in one call. "We can’t underestimate the importance of rallying around this budget. It serves as a footprint for something bigger." …

Yes, the best way to eliminate waste and cut costs and improve quality is to have the government take over things.

It’s always worked before.

About half the money for the new fund would come by capping itemized tax deductions for Americans in the top income bracket. The proposal, which administration officials characterize as a "shared-responsibility issue," would reduce the value of tax deductions for families earning more than $250,000 by about 20 percent, according to administration documents.

And never mind that this is a direct contradiction to Mr. Obama’s promise to not go any further than President Clinton did in taxing the upper bracket.

A vow repeated constantly throughout the campaign.

However, by cutting their deductions 20% he is raising their taxes.

What a shock, huh?

This article was posted by Steve on Thursday, February 26th, 2009. Comments are currently closed.

14 Responses to “Obama’s $1 Trillion Free Health Care Plan”

  1. russ51 says:

    From a sober and mature WSJ:

    But let’s not stop at a 42% top rate; as a thought experiment, let’s go all the way. A tax policy that confiscated 100% of the taxable income of everyone in America earning over $500,000 in 2006 would only have given Congress an extra $1.3 trillion in revenue. That’s less than half the 2006 federal budget of $2.7 trillion and looks tiny compared to the more than $4 trillion Congress will spend in fiscal 2010. Even taking every taxable “dime” of everyone earning more than $75,000 in 2006 would have barely yielded enough to cover that $4 trillion.

    Fast forward to this year (and 2010) when the Wall Street meltdown and recession are going to mean far few taxpayers earning more than $500,000. Profits are plunging, businesses are cutting or eliminating dividends, hedge funds are rolling up, and, most of all, capital nationwide is on strike. Raising taxes now will thus yield far less revenue than it would have in 2006…

    http://online.wsj.com/article/SB123561551065378405.html?mod=djemEditorialPage

  2. TwilightZoned says:

    Obama’s $1 Trillion Free Health Care Plan Umm…isn’t this title an oxymoron?

    • Liberals Demise says:

      You stole my thunder TZ but thats ok…..we saw the samey same inane Oxy!

      The “free” is what sells it to the worshippers.

    • Colonel1961 says:

      Well, in the real world, it would be the ultimate oxymoron, TZ. Sadly, it truly is free for too many of his most loyal supporters, who not only have no federal income tax liability, but get federal tax credits, so they can run to H&R Block to get their ‘refunds’. That is, right after they’re done receiving their ‘free’ medical care…

  3. canary says:

    Article says universal healtcare will do away with Republicans. Which googling, is the kind of b.s. I keep finding. Yet alone the contradictory comments by former candidates running, namely Obama and Hilary. And I can only find such flip floping b.s. by the both, or news articles I don’t trust. Anyone that can provide me a link or two, so we can figure what it realy means, aside already knowing it’s a socialist thing. Thanks many

  4. proreason says:

    The Dow at this moment is 50% below the Oct 2007 high.

    S&P 500 is 55% below Oct 2007 high.

    Small stocks are 45% below the high.

    35 days into The Moron’s War on America.

    • Colonel1961 says:

      In six more days we’ll know how much damage this dimwit can foist upon America in just 1,000 hours…holy heck, it already seems like 1,000 days. I mean, how many times per day can ‘The First Narcissist’ be on the damned boob tube, anyway?

    • TwilightZoned says:

      Colonel, I’m with you. The next 4 years is going to seem like ETERNITY! Maybe this is hell and I just don’t know I’m dead.

    • Colonel1961 says:

      If you think this is hell, try being a stock broker, TZ (assuming you are not in that line of work) – just talked to a buddy/broker who is having fits. While there have always been bears and bear markets, this is especially ridiculous! It’s a Catch-22, he can’t get anyone to short the market, because everyone’s sure it can’t go any lower; but he also can’t get anyone to go long, because no one believes the future is any brighter. And interesting anecdote, I thought…

  5. proreason says:

    At least this guy asks why the economy has tanked so mysteriously.

    “I don’t think this is something we can analyze from home. We need some real forensic accounting of Lehman Brothers’ books, AIG’s books, Iceland’s books, etc.. How did hundreds of billions of dollars disappear overnight? How did a 2% drop in houses impact mortgage-backed derivatives to the point of making them worthless? How did bond raters so totally miss the risks in these investments?

    While no one has the answers to any of these obvious questions, few are even asking them.”

    http://www.americanthinker.com/2009/03/how_did_this_happen.html

    How can something be fixed when nobody even understands what happened.

    but why be silly?

    The answer is always discovered by following the money.

    So who is benefitting from this economic meltdown….you? Americans? citizens of other countries? retirees? workers?……….well, just a thought here……..have Democrats benefitted? Has George Soros benefitted?

    hmmm

  6. Euryale says:

    Don’t bother calling EMS for your “free” health care. If Obeyme implements “cap and trade”, fuel will rise above $6 per gallon. Combine that with rollbacks in Medicare reimbursement for both Part A & B providers, and there will be no EMS to respond.

    Perhaps the government can provide for human waste disposal twice per week. “Bring out the dead … Bring out the dead”

    • proreason says:

      Their plan is to raise fees (like cap and trade) and avoid direct taxes except on “the rich”. By “the rich”, they mean the middle class, people making 75K to 250K, even though the emphasis in the lying speeches is on those making above 250K. The super rich will remain untouched, because they are the money-men behind the commiecrats and they have no earned income (they call it an “income tax” for a reason).

      The fees will hit the working poor and non-working poor extremely hard, but they will deny to the rooftops that the fees are “taxes”.

  7. proreason says:

    The Moron will cut the one element of Health Care that drives costs down.

    “A 2005 study published in the journal Medical Care found that every additional dollar spent on drugs for blood pressure, cholesterol, and diabetes reduces other health-care spending by an average of $4 to $7.”

    http://article.nationalreview.com/?q=YTQ1NDExZjQxYmYyYzY2YmIzMWM1MmEzZGFiOTUxYTk=

    All the better to make people dependent on Obamy and his handlers.

  8. Rusty Shackleford says:

    Spicoli, in “Fast Times At Ridgemont High”:

    So like, if it’s free….why does it cost so much?


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