Post by m52nickerson on Jan 27, 2010 9:08:15 GMT -5
Subtitled:
There's still time to rejuvenate our market economy and avoid a European-style welfare state.
Congressman Paul D. Ryan (R) from Wisconsin has written this article for the Wall Street Journal.
In the article Congressman Ryan give the GOP outline on how to get America back on track. Of course we have seen all this stuff before.
So what made the list:
1. Health Care - GOP fix is to restructure the Tax Code and moving the purchase of health insurance away from government and employers to individuals. It calls for a refundable tax credit of $2,300 for every individual and $5,700 for families. It also calls for the ability to purchase plans from any state. He also talks about having transparency in pricing and State based High Risk Pools.
While I kind of like the idea of giving everyone money to purchase insurance I don't know how the refundable tax credits system would work. If people had to buy insurance to get the credit, well then it make little sense. If not then what is to ensure people actually buy insurance with it. Also the numbers may be a bit low.
Then you have the whole buying plans from any state. This is nothing more then back door de-regulation. It would let insurance companies set up in states with the least regulation and offer plans with the least benefits. A win for them.
2. Medicare - Ryan calls for changes to this system to keep it around. Current Medicare recipients would keep what they have now. Those not yet 55 would get $11,000 to purchase a Medicare Qualified plan, based on income. Some with more need because of medical conditions could receive more. There is also the GOP popular Medical Savings Plans, which would be tax free.
Again giving people the money to buy plans is a lot like a free-market single payer, so not all bad. The Medical Savings Plans are kind of a joke as people who need extra help to pay for health care really would not have extra money to put in a savings plan.
3. Social Security - Just like the Medical proposal current SS recipients would not see a change. Those not yet 55 would be allowed to transfer 1/3 of their current SS taxes into personal retirement accounts. These would be able to be transfered in estates if a person dies and would protected from losing any value by the government.
Again nothing much I can pick on here. I do find it funny that the plans would be protected just as some of the banking practices that got us into trouble were protected, but overall not bad.
4. Tax Reform - Eliminate much of the tax code and have only 2 rates. 10% on incomes of $100,000 joint filers or $50,000 for individuals. All incomes above this would get a 25% rate. No loop holes, deductions, credits, or exclusions well except the Health Insurance Credit and personal standard deductions of $39,000 for a family of four. Corporate tax rate would be set at 8.5% and does away with any other tax.
The lower rate really does not change anything for people on the lower end of things, it may even help depending on what the standard deduction would be for Individual or Families larger then four.
The problem is the 25% rate is basically a tax cut for the highest tax brackets which currently are a 35%. Again tax cuts for the wealthy. It raises the question where is the money going to come from to pay those refundable tax credits or reduce the yearly deficit.
All in all I see some ideas that are workable in here, the problem is it is whole short sighted and does little to ensure that people who need help get any. If this is a starting point to which the GOP is willing to negotiate and work with the Democrats it is not bad. If it is a be all end all, well see you in the next recession.
There's still time to rejuvenate our market economy and avoid a European-style welfare state.
Congressman Paul D. Ryan (R) from Wisconsin has written this article for the Wall Street Journal.
In the article Congressman Ryan give the GOP outline on how to get America back on track. Of course we have seen all this stuff before.
So what made the list:
1. Health Care - GOP fix is to restructure the Tax Code and moving the purchase of health insurance away from government and employers to individuals. It calls for a refundable tax credit of $2,300 for every individual and $5,700 for families. It also calls for the ability to purchase plans from any state. He also talks about having transparency in pricing and State based High Risk Pools.
While I kind of like the idea of giving everyone money to purchase insurance I don't know how the refundable tax credits system would work. If people had to buy insurance to get the credit, well then it make little sense. If not then what is to ensure people actually buy insurance with it. Also the numbers may be a bit low.
Then you have the whole buying plans from any state. This is nothing more then back door de-regulation. It would let insurance companies set up in states with the least regulation and offer plans with the least benefits. A win for them.
2. Medicare - Ryan calls for changes to this system to keep it around. Current Medicare recipients would keep what they have now. Those not yet 55 would get $11,000 to purchase a Medicare Qualified plan, based on income. Some with more need because of medical conditions could receive more. There is also the GOP popular Medical Savings Plans, which would be tax free.
Again giving people the money to buy plans is a lot like a free-market single payer, so not all bad. The Medical Savings Plans are kind of a joke as people who need extra help to pay for health care really would not have extra money to put in a savings plan.
3. Social Security - Just like the Medical proposal current SS recipients would not see a change. Those not yet 55 would be allowed to transfer 1/3 of their current SS taxes into personal retirement accounts. These would be able to be transfered in estates if a person dies and would protected from losing any value by the government.
Again nothing much I can pick on here. I do find it funny that the plans would be protected just as some of the banking practices that got us into trouble were protected, but overall not bad.
4. Tax Reform - Eliminate much of the tax code and have only 2 rates. 10% on incomes of $100,000 joint filers or $50,000 for individuals. All incomes above this would get a 25% rate. No loop holes, deductions, credits, or exclusions well except the Health Insurance Credit and personal standard deductions of $39,000 for a family of four. Corporate tax rate would be set at 8.5% and does away with any other tax.
The lower rate really does not change anything for people on the lower end of things, it may even help depending on what the standard deduction would be for Individual or Families larger then four.
The problem is the 25% rate is basically a tax cut for the highest tax brackets which currently are a 35%. Again tax cuts for the wealthy. It raises the question where is the money going to come from to pay those refundable tax credits or reduce the yearly deficit.
All in all I see some ideas that are workable in here, the problem is it is whole short sighted and does little to ensure that people who need help get any. If this is a starting point to which the GOP is willing to negotiate and work with the Democrats it is not bad. If it is a be all end all, well see you in the next recession.
