When planning for a year, plant corn.
When planning for a decade, plant trees.
When planning for life, train and educate people.
Chinese Proverb
Means-Testing Medicare a Democrat CONCESSION?
Means testing is part of several federal assistance programs (Medicaid, food stamps, SCHIP, etc) Since the idea is to focus benefits on the neediest, why would the Democrats need to be sold? But, in fact, they do... Newly reelected Sen. McCaskill (D-MO)., once the most vulnerable 2012 incumbent Democrat senator she was trying to project a more centrist image the leftist Daily Kos signaled its opposition: "Claire McCaskill on MTP: Let's Cut Medicare Benefits". In practice, most reforms have focused on higher premiums (which has already started) to more out of pocket expenses..
Under the current system, unlike social security, all worker compensation is subject to a 2.9% tax , half of which is assessed to employee gross wages and an employer match. Next month an extra 0.9% will be assessed to employees/households starting at $200-250K. In addition, there will be an equivalent 3.8% surcharge on means-tested unearned /investment income, 2.3% tax on medical devices, etc.
Let me point out that there is no comparable concept to social security--there is an income ceiling, and more cumulative contributions make you eligible for higher pension savings.. You don't get more health insurance just because you contributed more over your career. It's more of an add-on flat general income tax.
Progressive Keynesian Paul Krugman puts forth his response here. He poses an interesting moral hazard argument: you pay more into Medicare and still end up paying more for the same benefits. He does give passing reference to the anti-growth effects of income taxes; other arguments include more complex administration and limited amount of revenue. He deludes himself into believing that centralized planners can fix the Medicare cost problem.
If there is anything I loathe, it's AARP that insists seniors have "earned" their benefits. A few posts back I pointed out we accrue something like $7T per year in unpaid senior entitlements (versus some $2.6T total government revenue for all government expenses). CATO also reports that beneficiaries get over $2 of benefits for every dollar paid in via payroll taxes and premiums. Who makes up the difference? The federal government.
I think the real objection is one of a slippery slope, e.g.., to save real money, they'll also need to impose higher fees, premiums, exclusions and deductibles to next higher income groups, etc.
I think the first thing we need to do is to let insurance be insurance. Participants need to be vested in efficient spending and we must address catastrophic care. We need to decentralize authority and resources and liberate the free market. Until we get true reform, including a more balanced tax system taxing consumption, we must come to grips with the fact that the status quo is not sustainable, and it's fundamentally unjust for younger generations to subsidize the older generation. We must find ways of extending the work careers of older people given longer lifespans.
Extending Right-to-Work to Michigan Workers: Thumbs UP!
Libertarians believe in the right to freely associate; however, we disagree with the conferring of corrupt crony government-provided privileges.
A right-to-work law is a statute in the United States of America that prohibits union security agreements, or agreements between labor unions and employers that govern the extent to which an established union can require employees' membership, payment of union dues, or fees as a condition of employment, either before or after hiring.Among other things without restoration of economic liberty, an employee could lose his or her job because of an arbitrary union decision, without the knowledge or consent of his employer. He loses his right to do what he wants with his own money versus being forced to pay for political and other uses he personally disagrees with. Unions should rely on persuasion, not morally bankrupt means to intimidate others.
Musical Interlude: Christmas Retrospective
Andy Williams Christmas Show, "The Most Wonderful Time of the Year"
