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Wednesday, November 25, 2009

The reality of new taxes paying for the government healthcare

The democrats are depending on many new taxes to pay for their healthcare system. There is a problem with that approach. The old saying is whatever you tax you get less of. They raise taxes on cigarettes as a sin tax, so you will use less of it. They want to raise taxes on gasoline so you will use less of it. Inevitably they begin counting the income from those taxes as if you weren’t going to use less. Ultimately the revenues are much less because people will use less.

The democrats are counting the income from increased taxes towards their healthcare plan. This number is included in their final cost. The reality is people will quit buying or quit doing whatever it is that they are being taxed on and the end result is more borrowing and a greater national debt. They want to pass a bill and say it is deficit neutral because they are counting all these cuts and taxes in the cost. That false reality will never ever be there. The cuts will not happen and the tax revenue will never come in. It is all smoke and mirrors, mostly just a big lie and the national debt will keep getting larger and larger.

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