Friday, April 30, 2010

How Obama REALLY Plans on Paying for his health program: VATs and CUTs

This could just as easily be entitled - HOW THE LEFT PLANS ON PAYING FOR OBAMA'S HEALTH PLAN.


How will the Obama administration pay for its new health care program?  Taxes and Cuts.


The newest idea that popped up was a VAT.  A VALUE ADDED TAX.  This VAT would replace the federal taxes on everything.  No more federal taxes when you purchase an item - but you would pay a VAT, say 10%.


This would be incredibly easy, very simple, and so much easier for us, the average American, to understand.  However - I have one concern, just one little concern.  Say an item is $1.00 today and no VAT exists.  Do we know what the 'true' or 'real' cost of that item is?  Do we know how much of the $1.00 is federal costs?  I believe I would accept this European concept IF we knew how much federal tax existed on every item and THAT tax was removed on say Monday, BEFORE the VAT was imposed on Tuesday.  I do not want to, and will not accept willingly or even begrudgingly a VAT when you never took off the tax we were paying before - double taxation, only one is a secret tax (the pre-vat Federal Tax, the government can use for whatever purpose), and the VAT would be the official tax that would rise regularly (of course, only after due deliberation - a tsunami in Indonesia and we need aid money, an earthquake in Tokyo and we need aid money, and an earthquake in Los Angeles and we have no money so need to raise the VAT, then a flood in New Orleans, a fire in Malibu, an earthquake in Haiti, and a volcano in Mexico - more aid is needed, and an increase in the VAT).


Unfortunately, a VAT does not curb the governments desire to tax.  A VAT doesn't provide much needed funds to pay off debts.  Please.  As fast as it comes in, the Congress is spending it, and don't believe for a moment that pay as you go means pay as you go - it means pay as you go when it works for you and hide the rest in long term debt.


Just look at the EUROS - they all have such a thing and it isn't lower, while it is fair, it never goes down, only up, and quite regularly as it is now a very convenient method of raising revenue.


If government spends a lot, which ours does, and would continue to do, economic growth would be impaired - we simply don't grow when the government is taking our money to spend on its interests (which may or may not benefit the whole of the nation and future growth).  This is not complicated science - it is common sense.  Some niches within our system would benefit - special interest groups would be helped, while the general welfare of the nation would see a net decline.  The evidence is in, the science is solid, there is no dispute only consensus on this point.


These special interest groups would benefit as Washington deliberates how much and who would be impacted.  a VAT could not be placed evenly on every item / service in the economy/society.  Massages, haircuts, car repairs, food, restaurants, doctors visits, lawn service ... who would and would not be impacted.  A great deal of power given to men in Washington, more even than they have now.


In this case, a VAT would not only be a tax for reveneue, but would be a political tool - used to bestow the graces of the ruling party upon you and your services, or to whack you and take your money through the imposition of a tax which would or could drive customers elsewhere.


If three companies do the same thing (sell or service or whatever you wiosh to call it) - 1) a larger company, not the greatest profit maker but it has capital to get through tough times.  2) a smaller company, fewer employees, but the larger of the 3 in terms of profit.  3) a small company with even fewer employees, and barely scratcghes the surface for profits.  The VAT is imposed and all 3 must incur the cost.  Company 1 lowers their cost for whatever by 5%, adds the VAT and waits.  #2 and 3 incur the VAT and raise their prices and ... suddenly 2 and 3 are uncompetitive and go out of business. 


The power to tax is the power to destroy and VAT could very well be the biggest whacking stick Washington has yet embraced (next to fines for non-using fees if one doesn't choose Obama's healthcare option).


Yet the VAT will be argued as fair, and as a means of raising the necessary monies to pay for your first-class health care plans (otherwise known as Die and Save Us the Money Plan).  Yet the VAt will not be enough, nor will taxing the very rich, who are already well taxed.  Nor will finding 100 million sitting around in a lonely account.  A good video to watch that makes this very easy to understand can be found if you click on this sentence.  


So how else can we find the funds needed to save the health of the country, care for the children, and our Seniors, the poor, the helpless, those in cancer units, and in wheelchairs waiting for medical attention? 


How?


Imagine.  What was Lennon's vision?  Peace, a world making love not war ... not only was it a utopian fantasy for the children of the 60s, but this idea of peace and harmony, unity with all our brother's and sisters around the globe is a very Marxist idea.  In these areas, utopianism or fantasy and Marxism come together, and it is here that we see Barrack H.'s plan for healthcare. 


Obama has a vision for America - his vision is one where we provide everything the people need, where we dialog with other countries, and sit down and discuss differences, where we use a military to airlift  food to some far off land, not to invade and wage war.  Obama's vision is one where the community of nation's would join together when an enemy state rose up to threaten the peace and stability of the whole, and together we would put them down - through dialog, concessions, and straight-talk.  Further, Obama believes that every nation has a right to be powerful, it makes us feel equal and gives us a sense of fairness and equality - and we all seek equality and fairness, and he regards it as his job to provide the opportunity for equality for all.  To these ends we need to refashion the financial world - take from them and share with the world, for our wealth is what makes us so formidable, and if we share some of it with everyone else, we will all be better off - peace will break out and people will go back to reading and doing art, poetry, and peaceful endeavors. 


Very utopian and Marxist, and when we cannot tax any more, whether a VAT or any other form of tax, cuts will have to be made, and every area of the budget will be looked at, none will be off the table.  That is fair, that is equal.  If we are to suffer in the social security department, then the military should likewise suffer, and his argument will be so persuasive the majority will follow.  When he starts cutting, he will use phrases like - we are cutting waste, we are cutting redundancy, we are saving you the American people billions, billions that can be put into makin g your health care plans even better, healthier, more hopeful and user-friendly.  The Left will cheer because they hate the military and the lesser there is the happier they are.  The moderates will be fine because they will hear - redundancy and waste and consider Obama a fiscal conservative, and that is all Obama will care about, 50.1%.


All that will work well the first year, even the fifth year, but what happens when the health plan begins to look exactly like what many warned it would become - bloated, restrictive, endless bureaucracy, never-ending lines ... back to the taxes.  Time to raise VAT, to save your health.  Now that we have come this far, we cannot turn back and sacrifice everything we have given, all the blood and treasure.  So, VAT or taxes will rise, and that will stem the flow, push the due date further down the road.  Five years later, the VATs will be high, and the need to go back to the military and do some fine tuning - cut out a battalion here, an aircraft carrier there, a few battleships, a tank division ... save hundreds of millions so easily, painlessly, that why not cut even more.  A few billion more won't hurt, after all, we don't ever need to invade Iraq again, there will never be a D-Day again - we will simply work with our allies, in conjunction with the United Nations.  So ... snip, snip, snip, cut, cut, cut ... and ta da, billions for health, not a cent for the military.  The Left will be orgasmic, the Moderates will be silent, and no one will care what the rest think.


And then China becomes world superpower, and Russia, to rival China, must compete, and rises above the US militarily for their spending will be on fast-foward while we are building our healthplan so we all feel good.


Want to bet this is the ultimate plan?  I am willing.  Slight hyperbole - absolutely, reduce the hyperbole, and what remains is the need to cut, and from where - you can't cut from social services because that is what Obama is spending so much time building up ... what remains is the military, and given his loathing for it, it makes perfect sense.  Understanding Marxism, it would be the military you cut. 


I have no doubt.  The only question is, how, when, and what excuse will they create to push through these cuts.  In fact, I am willing to also make a bet - the brilliance of their manipulation will make it appear as if the military wants to cut their budget. 


Amazing how coincidences will be so well timed.  Serendipity really, for someone.










Obama

Make Mine Freedom - 1948


American Form of Government

Who's on First? Certainly isn't the Euro.