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“Marxo-Sapiens” to the Rescue, Part 2: Prepare for 1,900 Pages of Unintended Consequences

November 9, 2009


Editor’s Note: Click here for Part 1 of this 3-part series

Americans will be very unhappy when this bill finally is implemented. Unintended consequences abound, as they always do, when liberals “do good” with other people’s money. Regardless of how bad one paints the picture, it is almost guaranteed to be worse. There will be a single government approved “qualified” insurance plan that all will be required to purchase. The only choice you will have is the size of the deductible. All other provisions will be pre-set by the government. I’m sure they know better than you, right?

Even though the bill is 2000 pages, the nature of this “one size fits all” plan has not yet been devised. So we cannot even evaluate what is being shoved down our throat. Feel safe yet? All tax filers will have to provide proof of being in a qualified plan, or be fined. You will not be able to keep your current insurance.

There will be enormous incentives to game the system. The creativity of Americans, rather than being unleashed in free markets, will instead be unleashed onto how best to “rent-seek” (i.e., “get something for nothing”) from their fellow citizens. For example, some will compare the costs of the fine versus the cost of purchasing health insurance. Some employers may choose to pay an 8% payroll tax rather than pay for insurance. That means you may now be required to purchase insurance with after tax dollars rather than get it “free” from your employer. And if you don’t buy insurance, you will be fined. But since insurance companies cannot deny coverage for pre-existing conditions, it may be rational for you to pay the fine of 2.5% of your income rather than purchase insurance. You simply purchase the “insurance” when you need it. Insurance companies will not be allowed to deny coverage or charge you more. How long do you think insurance companies can stay in business with that model? “Gaming” the system will itself become an industry. But it won’t last for long. It will ultimately and quickly default to a government single payer system.

Subsidies exist of course. Families making less than $33,000 get medical care “for free” and are phased out gradually up to $88,000 in income. Exceptions exist as to who gets fined for not participating based on various “hardships” and even religious views. Look for an up tick in new religions and “hardships.” Marginal tax rates will go up 5.4% for the selfish (and unselfish) “wealthy.” The highest marginal tax rates will be near 60% — some estimates are much higher.

See the concluding segment of of “Marxo-Sapiens” to the Rescue tomorrow.

Editor’s Note: Visit Michael Rulle’s Blog Here. See his previous NewsReal commentaries here.

  1. John Davidson permalink
    November 9, 2009 7:33 am

    There must have been a multitude of lawyers writing the bill and right there is why it is convoluted and incomprehensable.

  2. November 9, 2009 10:37 am

    Whatever happend to the Plain English Amendment?

  3. Theodore Blunt permalink
    November 9, 2009 8:49 pm

    This bill was written to buy the votes of people who no longer want the government to care for them “from womb to tomb” but now expect care from “injection to reserection’.

  4. MMM permalink
    November 10, 2009 8:26 am

    This bill was written to ‘redistribute wealth’ and doesn’t do a damn thing to provide affordable healthcare. What are middle class Americans going to do when they have to replace a heater, or replace a roof — they aren’t going to be able to afford to do it because the government has ‘redistributed’ their wealth in the form of this ridiculous tax on their income.


  5. Steve R permalink
    November 10, 2009 1:42 pm

    Many are the pundits now who claim the Senate will moderate, diminish, perhaps even kill Obamacare. I am not one who buys that song-and-dance. Hawwy Weed won’t be outdone, and there are too many fence-sitters in the Senate for comfort. Joe Leiberman is talking a good fight right now, but some tinkering (a ‘trigger’?) could well turn him.
    I’m reinforced in this view by this transcript(from NRO) of Charles Krauthammer’s take on the issue from last night’s Fox News All-stars.

    Krauthammer’s Take [NRO Staff]

    From last night’s Fox News All-Stars.

    On the passage of health care in the House:

    In the Senate, Lieberman has said he will stand in the way of a public option. I’m not sure that will succeed, because all the Senate has to do is put in a trigger, and if a trigger is inserted, then Lieberman will be against it but Olympia Snowe will probably support it, and you will get Democrats like Mary Landrieu of Louisiana, who have been on the fence on this, who will also [vote yes].

    So I think it’s possible that a public option will come out of the Senate which could be under a trigger.

    But I think the more general issue about the politics of this is that Pelosi has led her party over a cliff. If, as is less likely, it gets stuck in the Senate, then a lot of Democrats are way out on a limb the way they were after the cap-and-trade vote in the House. [And] if it passes in any form in the Senate, the Democrats are going to have a health-care proposal which I think will haunt them for a decade.

    There is so much pain in here — increase in taxes, increase in premiums, extra bureaucracy, interference in the medical treatment of patients — which people will be able to feel and to see within months and surely within years. This will be a millstone around Democrats for years if it passes.

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