Thoughts Before The Alarm Sounds

     One of the ways Republicans are trying to sell their Medicare proposal is by claiming that beneficiaries would “be enrolled in the same kind of health-care program that members of Congress enjoy.” Let's examine that claim.      Suppose that on the date the “Roadmap for America's Future” becomes effective, a government employee and a non-government employee are enrolled in a family health care plan for which the total annual premium is $7,600. The government pays $5,700 (75%) of its employee's plan and allows a $5,700 tax credit for the non-government employee.      Assume that the next year the premium increases by $50 per month for an annual premium of $8,200. For the government employee his employer will pay $6,150 (75%) of the premium – he will pay the usual 25%.      The non-government employee will also see an increase in his tax credit, but it will be based on the inflation rate. Suppose the ra...

     ...or starve the government beast – take your pick.      On April 24th I wrote about Rep. Paul Ryan's (R-Wis) “Roadmap For America's Future,” and its planned changes to our income tax structure. Today I will look at the Roadmap's proposals for the health care system. Although there is a connection between the health care system and Medicare, I will defer discussion of Medicare/Medicaid/Social Security until a later date.      Under the traditional system, people buy medical treatment either by paying cash for services or by buying insurance. Those who cannot afford either method may be eligible for Medicaid, and those over 65 years of age get partial coverage under Medicare. Medigap insurance is also available to cover the difference between Medicare coverage and actual medical expenses.      The Patient Protection and Affordable Care Act (PPACA) is a federal statute that was signed into law by Presi...

     ...or starve the government beast – take your pick.      As with all such plans, Rep. Paul Ryan's (R-Wis) “Roadmap For America's Future” contains numerous changes to our national priorities. Today I wish to write about the changes Ryan and the Republican Party would make to our income tax structure. I will discuss other facets of the Roadmap in upcoming days.      The Roadmap would not repeal our current personal income tax structure, but would set up a simplified system parallel to it. Taxpayers would be allowed to choose which system they wish to use.      Under the simplified system there would be only two tax brackets, 10% on the first $100K of taxable income for joint filers, and 25% on taxable income in excess of $100K. It would allow a generous standard deduction and personal allowance ($39K for a family of four). The only credit allowed would be a healthcare credit, which I will discuss at a ...