Wednesday, July 15, 2009

Tax the wealthy to keep everyone healthy

Robert Reich has a great post on the newly announced health care package from the House.

Some choice quotes:
But to say out loud, as the House has just done, that those in our society who can most readily afford it should pay for the health insurance of those who cannot is, well, audacious.

There's another word for it: fair.

But there's no reason to suppose that taking a tiny sliver of the incomes of the top 1 percent will reduce all that much of their ardor to invest, innovate, and hire in the future. Yet if this tiny sliver means affordable health care for a far larger number of Americans, who will be able to get regular checkups and thereby stay healthy and productive, the positive effect on the American economy is likely to be far greater.
And to say that small business gets hurt by this
Don't believe critics who say the surtax will harm small business. According to the Center for Tax Justice, it would hit only five percent of small business owners...
Besides, only the profits of a small business would be taxed.
The only problem I have with the legislation is that it keeps the current health care system intact, just adding more people to our current system. This doesn't do much to address the rising costs. Rising costs will require more tax, and then you've got a big problem. I am all for taxing the rich on this. They've had it really great the lat 10 years, and it's time for them to say 'Thanks'. But to not smash up the health care industry is going to be disasterous.

UPDATE: Slate reviews the House bill, and is generally positive about it. While I do like that the bill give the HHS secretary the power to negotiate, this power will probably be removed or curtailed after the Senate Finance committee gets done with it.

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