As the House of Representatives votes to de-fund Obamacare, with a bill that would fund the government by raising the debt limit to prevent a government shut down, the Senate and the President have vowed that the bill is dead with no chance of passing. Both Democrats and Republicans are locked in a struggle for a prize that would reward their constituents. That prize being health care, or more importantly who would pay for it. The Patient Protection and Affordable Care Act is actually a huge wealth redistribution scheme. It raises the premiums on those that can afford health insurance to pay for the insurance of those that can’t and will be supplemented with Tax money and money that we had to borrow from the Federal Reserve. The whole problem with the battle is the taking of money. It could be simply called theft by government to give to those less fortunate. And of course while playing the role of the middle man, the associated regulatory bureaucracy, the IRS, will need increased funding in order to pay for expenses associated with running the new government cash eating monster. Why would anyone want to make the IRS bigger and more powerful.?
What we need as a nation is to get our budget under control and stop the process of borrowing 43% of what we spend and begin to pay that money back. The interest on the national debt alone is crippling with an estimated cost of 5 trillion dollars over the next decade. We currently owe $49,000 for every man, woman and child in the United States, or $135,000 per taxpayer in this country and it seems to be accelerating exponentially. The young voters in this country should be screaming at their elected officials to stop this madness that will cripple our future economy with debt we cannot repay. A burden that will be passed to our children and their children. Simply put, we need to pay as we go instead of borrowing the money, even if we have to raise taxes. That gets us to the crux of the problem, who gets the bill. Currently about 50% of Americans don’t pay income tax and some even get money they did not contribute. The people who do not pay taxes are not vested in the system. When those that pay little or nothing start voting benefits for themselves, from the tax revenue of the few that pay the most taxes, it creates hard feelings, stifles innovation, and investment that creates jobs and rightfully so. While I am not a big fan of progressive taxes, lets just skip that part and assume that we should take a higher percentage from those who make more. The poor that can work should not be exempt from some income tax so that they share in the burden of helping those that can’t or won’t. Lets make it a fixed ratio of say, a 2 to 1 ratio or even a 3 to 1 ratio, where the wealthiest taxpayer pays a higher percentage, but all who have income should pay something and get rid of special interest deductions and credits. Then it is no longer the poor stealing from the rich with taxation, and we could raise the tax rates to whatever people were willing to tolerate and pay for what we want from government. We could find the balance that society wants with taxation and government services and it would heal the divide that has split our nation.