Friday, July 17, 2009

The $1.2 trillion healthcare reform bill derailed

From the Washington Post:
Under questioning by members of the Senate Budget Committee, Douglas Elmendorf, director of the nonpartisan Congressional Budget Office, said bills crafted by House leaders and the Senate health committee do not propose "the sort of fundamental changes" necessary to rein in the skyrocketing cost of government health programs, particularly Medicare. On the contrary, Elmendorf said, the measures would pile on an expensive new program to cover the uninsured.


Not only are we looking at an escalating budget deficit, but this bill would have a negative impact on job growth. Forcing corporations to pay the "health care tax" will incentivize them to reduce hiring (the CNBC interview below clearly points that out). Tax increases on individuals will reduce growth (as we've shown in Tax shock to the economy will create a W-shaped "recovery"). Half of the people hit by this new tax will be small businesses.

The nation is having second thoughts about this proposed health care reform bill. Congress is sensing the changing mood and reacting accordingly.