Thursday, June 28, 2012

Today, the Supreme Court ruled that the individual mandate is Constitutional, among other aspects of the health care law.  No one disputes that there are people who need inexpensive access to health care.  The dispute is how to provide it.  Today, the Supreme Court upheld a mandate that forces everyone to buy insurance whether or not they can afford to buy insurance.  The healthcare law states that if the insurance costs more than 8% of your income, the government will subsidize all or part of the costs.  No one will ever be able to put an exact dollar value on how much tax revenue is needed to pay for that.  It will always be a moving target and a very expensive one.  Congress will try not to increase payroll taxes, which means taxes will go up at the business level.  What many people do not realize, is that small businesses will pay those taxes, not just big corporations.  Small businesses who hire one or two people to work will likely not be able to hire one or two people because the salary money will be used to pay for health insurance.  I hope the future for our kids and grandkids does not mean that 50% or more of their paychecks go to the federal government to pay for health care.  But that is likely.

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