Some in the Federal government are saying that taxes needs to be raised. Treasury secretary Timothy Geithner answered affirmatively to the question that taxes well have to raised in order to counteract the raising deficits that will be created by Obama Care. From FoxNews.com:
http://www.foxnews.com/politics/2009/08/02/obama-officials-end-recession-near/
President Obama may have to raise taxes to pay for public health care and the growing deficit, an eventuality that administration officials touched lightly on Sunday as they promoted an economy emerging from recession. [...] "We will not get this economy back on track, recovery will be not strong and sustained, unless we ... can convince the American people that we're going to have the will to bring these deficits down once recovery is firmly established," Treasury Secretary Tim Geithner said on ABC's "This Week." Asked point blank whether it was right to suggest it is a matter of when, not if, taxes will be raised, Geithner responded, "It is absolutely right."
This is extremely interesting to me. In one of my previous posts I discussed how Obama and some in the Administration that if we pass Obama-Care the government will produce a profit. However, this should give us pause because if Obama-Care will create a profit, then why are some of the individuals in the Obama Administration talking about raising taxes due to rising deficits? According to the CBO, the health care spending that Obama is proposing to absolutely sustainable due to the raising cost of health care. From the Heritage Foundation:
The CBO says the current House plan would increase the deficit by $239 billion over 10 years. And that number will likely continue to rise over the long term. Similar entitlement bills in the past, including Medicare, have scored much lower than their actual eventual cost.
Therefore, in order to pay for health care (also from FoxNews.com):
As Democratic lawmakers evaluate options to provide government-run health insurance, Rep. Charles Rangel, D-N.Y., the chairman of the House Ways and Means Committee, said tax cuts will only hit the wealthiest business owners. "Under our statistics, 96 percent of small businesses would not be hurt by this tax. It's less than 1 percent of the wealthiest people in the United States that would be taxed, and that's at a 1 percent tax," he said.
Interesting. I thought that Obama-Care was going to produce a profit. In my previous "Government Health Care and Profits" I said:
If the government was actually going to create a profit via health care then why is the government going to raise taxes? If the government was going to create a profit via health care then the government would not need to raise taxes at all because profits would entail money being earned on behalf of the government. If the government was going to make a profit then raising taxes would not be even considered because it would be absolutely unnecessary to do so. Government profits would totally negate the need for raising taxes, but again, as I have been arguing, the government cannot create a profit by design.
Therefore, in order to pay for Obama-Care, the government by necessity will have to raise taxes. This consequence is absolutely unavoidable if Obama-Care is passed into law, and the statements made by Geithner and Rangel only prove this point. So this much is true:
1. Government will not produce a profit via Obama-Care.
2. Obama-Care will cause the Federal government to raise taxes.
3. Obama-Care will increase the Federal Deficit.
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