No Silver Lining – Obamacare Taxes the Poor

We passed the bill, and even now we are still finding out what is in it.  When Nancy Pelosi said we had to pass the 2,700 page healthcare bill to find out what was in it, that’s because nobody really knew.  Turns out they missed something big.  If a state can’t pay the $2 billion to set up a state run health insurance exchange and passes on that portion of the law, the federal government cannot provide the poor in that state with health insurance tax credits.  In other words, if states spend their limited resources on teachers, roads, police, firemen, and libraries instead of building one of Obama’s bureaucratic insurance exchanges, the poor not only don’t get help buying health insurance, but then have to pay the penalty tax for not buying health insurance.

If $695 in penalty taxes is enough to bankrupt a homeless person, than you can count Obama’s claim that no one would ever face bankruptcy for medical reasons again as one more broken promise.

There is a provision for the federal government to set up a national exchange for states who don’t or can’t spend the money to build their own.  However, a simple mistake in the law, or possibly an intentional penalty, only allows for federal tax credits to individuals in states with state run exchanges.  Perhaps Obama thought that by the time the law was implemented states would be able to shell out an additional $2 billion to pay for it.

Personally, I support Governor Scott’s decision to use that $2 billion to keep Florida from having to lay off teachers in our already hurting school districts.

Add this unforced error to Obamacare and there are few silver linings left for most Americans. Families can keep their kids on their health insurance up to age 26, but in many cases these “kids” are either old enough to be out on their own or are still students and could actually get student health insurance plans for far cheaper than the cost of being added on to their parent’s plan.  At the same time, the cost of adding 25 year olds to family plans has helped raise rates for everyone.  There is the tax credit for small businesses, but a tax credit for businesses with 15 or fewer employees who make less than $50,000 but can still afford to provide health insurance and pay an accountant who knows how to figure the credit are few and far in between.

When the health insurance taxes are fully implemented and the price of health insurance shoots high enough, no one will get health insurance until they get sick.  In states that can’t afford exchanges, the poor won’t get insurance either.  The very problem Obamacare sought to fix, that of middle class and poor “free-loaders” who either can’t afford insurance or decide not to buy it, will be made infinitely worse by Obamacare.

One more thing to add to this mess is that many states can’t afford the Medicaid expansion either.  Liberals are scratching their heads trying to figure out why states would forgo more Medicaid money.  But it’s like this: picture if someone with a million dollars in debt invited you to have steak dinner with him at the most expensive restaurant in town.  The two stipulations are this, first you have to pay half, second you have to then do the same thing for every dinner for the rest of your life.  And if this man with a million dollars of debt can no longer afford his half, you’re stuck with it.  Would you accept the offer of “free” steak?  State’s can’t afford their half of the Medicaid expansion, and they certainly know Uncle Sam can’t afford his share either.

In the end, Obamacare is bad news for the majority of Americans.

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TEA Party’s New Mission

John Roberts, what were you thinking.  If this question went through your mind at about 10:30am on June 28th, that puts you in good company.  In fact, the whole ruling on the healthcare law frankly seems odd.  First they ruled that it wasn’t a tax so that they could proceed with deciding if it was constitutional or not.  Then they ruled that it was a tax so that they could say it is constitutional.  Then, in a twist of irony after Obama’s recent decision to stop enforcing immigration laws, the Supreme Court ruled that the Federal Government couldn’t penalize states for not implementing Obamacare.  After this whirlwind, what we ended up with is the biggest regressive tax on the middle class in our nation’s history.

And that is when the sleeping giant woke up.  Suddenly we were reminded that we are Taxed Enough Already.

In 2010, Conservative Constitutionalists and TEA Party activists had a reason to live.  Democrat policies were rejected by voters in a massive conservative sweep.  But after two years of being beaten down by mainstream media and the Republican establishment, and the influx of special interest commercialism into the TEA Party, the heartbeat of the movement was faint.  You can feel free to disagree with me, but let’s be honest.  The rallies had turned into book tours and the infighting had handed victory in the primary to Mitt Romney.

Every Republican knows that Romney will do great with the economy.  Shoot, most Democrats know it, but won’t admit it.  Despite this, many conservatives have become purists and would still struggle to pull the lever for Romney.  I suggested a while back that many conservatives will be more willing to open their wallets to conservative PACs than to Romney.  Many conservatives will vote for Romney, but won’t put a Romney bumper sticker on their car.  Many are voting for the candidate named Not Obama.

And then the unthinkable happened.  The chief justice Bush appointed joined the majority and ruled Obamacare constitutional.  Even Justice Kennedy knew better.

Now 2012 has all new meaning.  It is no longer the establishment RINO versus the unpopular liberal.  It has become what it was in 2010, a referendum on Obamacare.  So far, conservatives are up 1-0 when it comes to elections on Obamacare.

Eugene Robinson, in an article suggesting that the Supreme Court decision will heal America, said that the decision was bad for Mitt Romney.  I think we can say with confidence that this sentiment is wishful thinking on the part of the Left.  The election is no longer about Romney.  It is no longer about RINOs or Republicans either.  As of 10:30am on June 28th, this election is about one thing:

 

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