Conservative Health Insurance Plan And Tax Break--

At the Same Time!!!

Rather than create another Federal Bureaucracy with a host of employees and endless new departments and rules and regulations, it should be left in the private sector where they are already equipped to handle new insureds. Current health insurers have the employees, facilities, computers and complex infrastructure to handle the influx of the uninsured. Therefore, it would be more efficient to leave to each State their share of uninsureds to absorb into the various insurance companies servicing their area.

Why would the private sector take on this burden? Answer= Significant Tax Incentives. For example, if a company could write off $2.00 for every $1.00 it expends in insuring the uninsured, then it would be motivated to take on the uninsured and provide a policy. Obviously, it depends on a business model and the ultimate tax burden of each company, which would have to be calculated.

The beauty of the plan would be to prevent a new bureaucracy and to lessen the amount of money going to the Federal government, which is ultimately wasted for pork projects and/or inefficiently used. It would lessen the amount of new Federal employees, and ultimately lead to more people becoming insured for each dollar expended. Is there any question that the private sector would do a better job than a Federal bureaucracy? The more of our money the Federal Government has the more power it has, and the greater potential for abuse of power.

Even if the insurance companies are not motivated by the tax incentive, a similar plan could be offered to all companies and individuals to lessen their tax burden if they send their money to a non-profit set up to collect the funds and to distribute to pay for insurance policies. Each State government would designate the non-profit approved to accept the donation. If desired, each State governor can appoint the Board of Directors, so that there is political accountability if the non-profit fails to act correctly. The payment of the tax money by private citizens and/or companies to the non-profits would act more like a private donation to charity than a government program.

How do we properly designate who is qualified? Answer=Require anyone who is interested in the benefit to file a tax return no matter what the income level. This would require those who do not pay taxes to fill out tax forms stating their income, as well as answering specific questions under oath to determine eligibility. If they lie about their eligibility, then they are subject to fines and imprisonment just as those who pay their taxes. Initially, certain income levels can be set and, depending on the response requesting coverage, the pool of eligibility can be increased. Since the program would be run by non-profits (501(c)(3)’s), the federal and state governments would have power to audit and prosecute fraud. Having a system that is not run by Federal employees would decrease fraud and waste. When was the last time a Federal or State employee was fired or prosecuted for fraud or wasteful spending?

Obviously, particulars need to be added, but as a general framework, it is a win -win for all involved. People insured who weren’t before, and companies and individuals with a lesser tax burden. It would serve as a stimulus to the economy for the tax breaks, and lessen the amount of money that the federal government can control. The more money it has, the more power it has. The more power, the greater chance for abuse. It is an abuse of power to take private citizens money and then waste it, even if it is for the best of intentions.

Requiring all who want the coverage to fill out an IRS form will also determine how many people really need the benefit. I am sure that a significant percentage of the “47 million” can afford to pay for health insurance, but they choose not to make it a priority. This would clarify that number. Based upon my review of the other health care plans put out by the democrats, which will continue to be a major issue that may ultimately decide the election, I think this plan strikes the right balance. Charity through tax breaks. The people of this country are the most charitable in the world. It is time to reward their contributions and sacrifice in working hard for their money by lessening the ever increasing tax burden the federal, state and local governments are putting on their backs every day.

Tax incentives for the poor and uninsured won't work.  They don't have the money to get the benefit of the tax break, and, many have not made getting insurance a priority.

 On 1/13/08, another Town Hall blogger, Old Social Worker, directed me to an outstanding video on the subject at freemarketcure.com, which confirmed my thought that the "47" million number is exaggerated and represents many who do not make insurance coverage a priority even thought they can afford it.