It Finally Happened

Well, the health care bill was finally passed through the House. I think this is going to really hurt the economy. Let me tell you why.

1) The bill increases the medicare payroll tax that businesses and employees must pay.
2) 40% Excise Tax.
3) Medicare costs will be cut.

Now, think of how much money the government already takes out of your personal paycheck each time. If you're single, it's a huge percentage. If you're married, it's not as bad of a blow. One of the taxes that are on your paycheck stub are medicare taxes. The employer typically has to pay half of it as well for each employee. This is not any good for the economy. Both businesses and consumers have less cash to either invest or use to purchase goods.

The 40% excise tax is going to be charged to all insurance companies that have high-end plans. This will definitely affect the insurance premiums. I guarantee that they'll go up.

When the government cuts Medicare costs, those baby boomers will receive worse health benefits. If you didn't know, baby boomers are all retiring right now. Most of them won't have enough in retirement to live more than a year. Most insurance companies will not insure older people due to their high risk of high health care expenses. If the government cuts their health care, where do they get it from? I would think that they're the ones that need it the most.

I was told recently by a financial analyst that the current economy is just staying level. He said that it could go either way, up or down. I would guess that after this health bill being passed, the economy will depress further. Another ridiculous thing about this health bill is that everyone is going to be required to purchase health care. The good news is that it's not until 2014, so we've got 4 years to go.

If you want to get any sort of humor out of this health bill, they are going to be charging a 10% excise tax on indoor tanning services. I guess we won't be seeing as many orange people around. Those who do indoor tanning should get their tans in now before the price goes up, and while it's still winter-like conditions outside in most places.

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