Pay For It Yourself

Today, President Obama announced that the US Government would be throwing out the plans to create a missile defense shield in Europe and replacing it with an updated program. The President did not state what the new program would consist of, but he did state that the Joint-Chiefs of Staff were all in agreement over the change in systems.

This is once again an example of the President cutting out programs that President Bush worked so hard to get passed. Is this a bad thing? No it is not, but we need to keep a close eye on the actions of President Obama as he continues to cut programs in order to fund his own agenda. There has been too much waste on both sides of the aisle. There have been far too many Republican and Democratic projects that have been paid for by the Federal Government that are simply pork projects that need to be cut out of the Federal Budget. These projects, while helping the local areas, are more designed to keep politicians in office than they are to help the country as a whole. These projects should be paid for by the state and local governments. Only in those areas where there is not a substantial tax base, such as western Wyoming, should the Federal Government step in to take control.

This would not be a popular idea. The American people love it when others pay for their needs, but it should not be that way. This does not mean that we must raise taxes in order to pay for every new project, rather we should be spending the taxes in the area that they are being collected from. This would not only prevent wasteful spending and increase spending on the truly important projects, but it would also help the American people to have greater pride in the infrastructure of their communities. When you must pay for your own bridges and stop lights and libraries you are more likely to not only use these services, but also to take care of them.

The overall effect of this idea is that not only will we be wasting money on random projects, but the things that we use today will last longer. This only save the people more in taxes. President Obama should cut wasteful programs, but we must make sure that it is not so that he can just pay for his own "bridge to nowhere".

Health Care and The Deathstar

Tonight we were once again addressed by the President of the United States in what can be seen as the end of the month long intermission that we have had from the healthcare reform debate. For months now we have heard about death panels and never ending lines in Japan as people wait to see a doctor. What the President wanted to do was to get his message to the people in a softer light than has been cast by so many in the last few months.

While there is no argument that the President is great at giving a speech, there are a few different points that need to be addressed. First off, there are some things that everyone agrees about. Those things include access for everyone to affordable health care, the right for people to group together to get better prices on insurance, including those who pay for their own insurance, the need for the people to provide for those who cannot provide for themselves and that insurance companies should be able to provide incentives for those who participate in wellness programs. While these all are very good thing that we need to see in the near future, it is more important to work on the things that there is so much disagreement on. The President tried to correct what he referred to as "misconceptions" in the healthcare reform bill, but there are flaws in what the President feels is solid health care reform.

First, the dreaded "Death Panels" that have been the source of so much debate. This come from the idea that there will be a panel that seniors will have to go before where the panel will decided if paying for health care for these individuals is worth the cost, or should they no longer provide coverage. The President firmly denies these allegations in a very Animal Farm type statement. I believe that the President and members of Congress believe with all of their hearts that these panels will not happen, but what they fail to realize is that the possibility of these panels is there. It will not come in the next 5 or even 10 years, but one day down the road, the bureaucracy of the US Government will start to work its wonders as the need for a set system of rules will bring the likelihood of the denial of benefits creeping closer and closer simply because they do not met a set standard of criteria. While this may not be the problem that it has been made out to be, it will be very important down the road when for the individual that is sitting before the board praying that the government will continue to pay for their treatment.

Second, in what is bound to be the most talked about moment from the speech, the President stated that the program would not cover any illegal aliens, to which Rep. Joe Wilson shouted out "You Lie!" This moment(above), which was clearly disrespectful and should be apologized for, only shows a small hint of a much larger argument of illegal immigration. The questions is who will pay for the hundreds and thousands of illegal aliens who cross the border simply because they are sick and know that they will receive health care free of charge because the people of America cannot stand to see a person in need turned away. Will the border hospitals be forced to continue the current practice of paying for the service of those who get help in their hospitals who cannot pay for themselves? This is a question that needs to be address and not simply brushed off, unless of course we can manage to build a fence that is 1000 feet tall and 1000 feet deep and extends the entire length of the border, and since we don't foresee that happening, we need to address the real problems of this health care that will be provided, coverage or not.

Last, the President wants this coverage to be mandatory for every American. He referred to auto insurance as a successful example of how it will work. Let us look at the problems with this. For one, there is an option with auto insurance. If you don't want to pay for the insurance, you can choose not to drive. That is a real option for some. The ability to remove oneself from the system is a right that we hold dear in America. Forcing everyone to have insurance is just not possible in the current system. How do we do this? We need to have the insurance eligibility based on taxes.

What do you mean taxes? Well simply, to get coverage you must file a valid tax return for the prior 3 to 5 years. This will do two things; first, it will make sure that the American taxpayers are the ones that are receiving the benefits from their taxes. The second, it will encourage a substantial increase in the paying of taxes in the United States. If you provide a benefit for paying taxes, as well as a punishment for the lack of doing such, the tax revenue would jump substantially. This would help pay for the program as well as encourage responsible government participation on the part of the people.

To make this work, there would need to be a punishment for the lack of participation. How can we do that? It is clear that we cannot deny emergency care for those who need it, regardless if they pay taxes or not. What we can do however, is to deny other government benefits to those who do not file tax returns for the last several years. What can these be? No student grants, no subsidies for businesses, and no benefit that helps someone in situations that do not risk the health of the individual. By doing this, the government would be able to encourage the payment of taxes, as well as the healthcare coverage for most of America.

It should be noted that even the President of the United States can see that there are healthcare systems that work, for example he noted the Intermountain Health Care Systems in Utah. It "provides above average healthcare, at below average prices" stated President Obama. It is clear that low cost healthcare is possible. The President was referring to the non-profit organization (including the insurance arm under the name of Select Health) that was started by the LDS Church that now provides some of the best medical care in the world, let alone the mid-west. They recently opened what has been come to be called the Deathstar, as it was believed the new state of the art hospital built in Salt Lake City would kill off any other hospital in the area. Yet this single organization now provides better coverage at lower cost, while always keeping the need and rights of the patients as their main concern and not how much money they can make for their share holders. Now if only the government could figure that out.

There are many other things that need to be address, and we will continue with the discussion in the next post.

A Downsized Education

It has been clear for some time now that the bubble has burst. No longer is "flipping" a house considered a secure way to make a living. So many that passed up the steady career choice out of college are now struggling to get by as the companies that prospered in the time of abundant growth are now forced to cut the people that were hired hoping for the chance to become the next millionaire CEO. No one argues that the sub-prime lending extravaganza led directly to the current economic state. But how far are we willing to let the cash strapped government bodies take their spending cuts?

For years, hordes of people flocked to California as the gold rush of the exploding housing market promised to make a man rich in a year. As long as the people were continuing to make good money, they let the state government create government program after government program that were paid for by the seemingly unimportant taxes that were taken out of every workers paycheck. Programs were created that funded schools, employed workers, provided healthcare for many and others that did everything imaginable to provide for those who could not do so for themselves. Soon there was a second rush of people as those who counted on the government for support flocked to the coast in search of the never ending source of government help.

Things then took a turn for the worst. The housing market collapsed, bringing with it one of the largest banks in the world, starting a chain reaction that saw thousands lose everything and millions more lose close to it. As the dominos fell, incomes were slashed and with them, the tax revenue that so many states count on, in particular California. Face with a budget short fall that rivals the GDP of many small countries, California is now faced with finding a way to fund hundreds of government sponsored programs with no money to do such. They are unable to even pay their current obligations, being forced to send out "IOU" Checks that cannot be cashed until the next fiscal year. Being forced to trim the fat from the various programs, where does the state turn? Education.

With cuts to the Education budget, the California State University system is being forced to find way to save a buck. They started with tuition increases, which are to be expected. Almost every university raises their tuition a small percentage to keep up with inflation. There are few, however, that find it necessary to raise their cost of an education by 30% in less than three months. Even with this steep increase in tuition, teaches will be forced to take a 10% cut in pay by taking two day furloughs every month, resulting in two days of classroom education missed by the students enrolled.

Why is it that so often the immediate effects outweigh the long term results? We know that the only way for a society to grow is through the education of the people. It does not matter in what the people receive an education, be it a degree in marketing or a course in car repair, all that matters is that the people are given a chance to reliably provide for themselves. Californian has always seemed to understand this as they have made higher education in there state more affordable than almost any other place in the country providing a chance at an education to thousands more that may have had the opportunity otherwise. Why is it then that one of the very first things they cut funding too is the education system.

Times are hard. There is no room for waste of resources, but the only way to overcome the current situation is to educate the people in a way that will allow them to provide for their families for years to come. A taxpaying worker is far more helpful to a society as a whole then is the man who still uses government programs to get by because the state cut funding for his education. Yes we need to feed the children, and yes we need to care for those who are physically unable to care for themselves, but close behind is our responsibility to help others provide for themselves. You can give a man a fish, or you can teach him how to work. Downsizing education will only make it more difficult to learn how to cast a line.

Misguided Efforts

As the fiscal year for many states expired on June 30^th and began again on July 1^st, many states use this date as the official enforcement date for any new laws passed in the previous legislative session. This year, the state of Utah had several highly publicized laws go into effect. Some were met with little resistance and even some celebration, as was true with the new liquor laws. Others, on the other hand, have not received such a high approval rating from the local communities. One in particular concerns the much debated topic of immigration.

Senate Bill 81 sets ups guidelines for what employers must do to verify that workers in the state are not here illegally, and makes it a crime to knowingly transport or harbor an illegal alien. Many in the local communities, particularly those communities composed of a large percentage of Latinos, have become very outspoken against the bill. They fear that any law enforcement officer will be able to question them regarding their legal status when they are pulled over for a traffic violation. They are expending their efforts in the hope of having the bill repealed if possible, postponed if not.

For years now, the fight of those who support the bill has been to build bigger, longer, and deeper, to keep illegal community from entering into our country while providing a harsher punishment for those who do break the law. This system has failed to provide the security that so many want. It seems that the government just does not have the resources needed to provide the level of security that the "Minute Men" feel they need to provide. And now, as the government tosses back and forth the idea of allowing the illegal community access to the Social Security fund, of which they have made no contribution, outrage is beginning to pour into Washington as so many who have been paying into the government plan their whole lives, will not be able to access any of the money that the government has forced them to contribute while other who have paid nothing will receive their benefits.

It appears that there is only one true way to fix this problem. Rather than spending time asking how legal it is for a police officer to ask your immigration status is, let us work together to find a way to change the status of so many illegal aliens, to that of legal, tax paying members of the community. Would it not be better for those who are now being paid under the table, tax free, to help pay for the many services that the government provides. They too would then be paying the taxes towards Social Security and FICA. No longer would there even be an argument over the legality of a question as each and every member of the community would be paying for the benefits of living here in this wonderful country.

We should focus our efforts on the laws that can make a true difference in the argument. Fighting over the same things that have moved us nowhere only creates hate and anger towards those who should be our friends. Instead, we should work together to make it possible to each and every one of us to become productive members of society, regardless of where we were born.

Smoke’em Out

A new federal tax on cigarettes went into effect today, and apparently it's breaking news. When I got to the CNN website this morning, the very first picture on the page is a man complaining about how he has to pay more for his smokes. "They're picking on us poor people…" say the man, "They have been for years." While I know what it feels like to feel picked on, I don't really have much sympathy for smokers. The main complaint appears to be that smokers feel that they are being singled out for tax increases every time the government wants to fund something, and all I have to respond to that is… "You are, Deal with it."

It's not often that I side with the majority, but in this case, I have too. First off, we all know that smoking is bad for you. If there is anyone still out there that doesn't agree with me is either completely naïve, or is so old that they are still living in the 50's. Smoking is related to an increase in every health risk from cancer to diabetes. There is a reason that smokers get charged higher health insurance premiums. Study after study has shown that smoking is a slow painful death, and yet there is still a group out there that refuses to stop the habit.

Next, smokers are part of a group that, in economics, which are referred to as inelastic. Inelastic means that if the price of a good goes up, the demand for the good remains the same. This means that if the price of cigarettes increases, very few people will stop smoking. This is a great thing for the government. If the lawmakers need to find a way to fund a program, inelastic goods are great things to tax.

There is a way to combine these two points. Smokers often fall in the category of not having health insurance. They have an income under the poverty level and cannot afford it, or they are already living off the government and have everything paid for by Medicare or Medicaid. This does not mean that everyone under the poverty level or on Medicare smoke. But there are many studies which show that smokers are lower income households with no medical insurance. So what happens when these people get sick? The government pays for their medical care, while they continue to smoke. So why should we not have them pay for some of the other programs.

What was the new program funded by the tax increase, SCHIPs, State Children's Health Insurance Programs. That's right, the increase is slated to help develop programs that provide health insurance for children of parents who can't afford private insurance for their children but don't qualify for Medicaid. Why are smokers complaining?

Yes the new tax is almost 10 times more that it was a yesterday, and yes it is going to cost an extra $10 to buy a carton, but you can always avoid the tax and quit smoking. It would help everyone, especially you. Stop complaining just for the sake of complaining. If you are not willing to change, regardless of the price, both money and health, then be quiet and hand over the cash.