Sunday, October 31, 2010
The fundamental problem is that we are all forced to participate in these programs, we have few choices, lower return on our investment and a massive loss of opportunity through inflationary measures to shirk the debt these unsustainable programs demand. Transitioning from a program for all to a minimal fully portable safety net benefit may take decades but all participants need to be part of the solution from existing retirees to the teenage employee. For Social Security, increasing the eligibility age to 70, capping the income paid out and moving to private accounts will be the ultimate solution for America. Products that guarantee a rate of return that covers inflation will be the minimal option available in the market.
This should be done immediately rather than phased in for it merely increases the cost for those that follow. If we limit government, jobs will emerge to help us fill the unanticipated gaps in our individual financial planning. We'll find ourselves better off in ten years as individuals and as a Nation.
The few things the Federal government can do to assist in the development of competitive medical care and health insurance markets is to return the financial responsibility for Medicaid to the States. We can no longer afford this crushing debt and the devaluation of our savings to maintain that which is driving more Americans into poverty. States will be forced to rewrite their Medicaid coverages with a reduction in mandated coverage, as fully portable benefits without price fixing or cost shifting for greater transparency and medical care accessibility. They' ll need to open their markets to innovation in insurance coverages to give real options to those with pre-existing conditions and for all socio-economic classes.
I support means tested individuals having the capacity to receive a tax-credit to purchase health insurance as a cheaper way to deliver Medicaid. As a business owner I write off the cost of health insurance or the equivalent in salary for my employees. There are many folks that would prefer to be treated as a 1099 (self-employed) rather than as an employee so they can remain with the health insurance company of their choice AND write off the cost of their health insurance premium. What our politicians can do, is eliminate the barriers to true portability without forcing companies to take on business that will harm them financially. With Federal action to allow across border purchases, State Insurance commissioners will have a more challenging role to play
I reject the notion that we should pay for anyone who can afford to pay for their own rights and responsibilities such as healthcare for those with pre-existing conditions through proposed high risk pools and exchanges. This is an expansion of benefit and government meddling should be soundly rejected. If people fall into poverty then Medicaid is there for them irrespective of pre-existing conditions. The private markets have always held the keys to the best solutions but State and Federal regulation has extinguished them.
An example of private market solutions for pre-existing conditions would be a high deductible plan with an exclusion coupled with a health savings plan and a local pay program for chronic condition care. The more government dictates the solutions the higher the cost and the less innovation and efficiency to address the needs of our population.
Congressman Ryan's flat tax, two tax levels of 10% and 25%, is an excellent alternative to our convoluted and expensive tax system. Ten percent will be applied to joint filers up to 100,000 and 50,000 for individuals and twenty-five percent for anything above these amounts. I support the elimination of the ATM (Alternative Minimum Tax) and the death tax.
We need to eliminate all subsidies, grants, tax credits and anti-competitive regulation to Corporations and then and only then, eliminate the Corporate tax. This would be close to being revenue neutral. I support the elimination of these same subsidies to Corporations and non-for-profits on a Federal, State and local level and look to fund only through income qualified individuals minimal fully portable benefits without price fixing or cost shifting.
The most important by-product of a well regulated and overseen private market for commerce, charity and the individual is that it best serves the consumer, investor, taxpayer and the poor at the lowest cost. Competitive markets provide the most opportunity for the most people. Subsidiarity, government at the lowest possible level of regulation, tax and oversight, develops better tailored solutions and results, builds defused leadership capacity, innovation and more frequent success. Through these proposed competitive markets, fiscal responsibility and Constitutional limited government we become a stronger, more resilient America and can then compete in a world where we must compete.
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