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The 'bipartisan' big-government health plan

October 15, 2009 | By Amanda Reinecker

Earlier this week, the Senate Finance Committee passed the health care proposal championed by Sen. Max Baucus (D-MT). The 14-9 vote reflects a strong partisan split: Maine's Olympia Snowe was the only Republican to vote for the measure. Nonetheless, the Left now claims the vote as a "high water mark for 'bipartisanship' in health care reform."

The nine dissenting Republicans on the committee argued, correctly, that the Baucus bill raises taxes and paves the way for a Washington takeover of the health care industry.

"Now all of the bills will be merged together behind closed doors," writes The Heritage Foundation's Conn Carroll in The Morning Bell. "All the bills are fundamentally flawed and will only get worse as the leaders in the House and Senate have to commit to actual details," he explains.

These "details" will likely include elements common to the Left's various proposals:

  • A hefty price tag that will sharply increase federal spending -- meaning more taxes -- and add to the already ballooning deficit, while still leaving millions uninsured;
  • A government-run health care "public option" or "co-op" that millions of Americans will be forced to choose over their private health care plans;
  • An employer mandate ordering all employers to provide government-approved coverage for all of their employees or else face a harsh penalty tax. This will "result in lower wages, fewer jobs and slower economic growth";
  • An individual mandate that will, for the first time in U.S. history, force Americans to purchase federally-designed health care packages, whether they want them or not;
  • An expansion of Medicaid, increasing the number of people dependent on this poorly performing entitlement program; and
  • A steep cut to Medicare spending to pay for it all -- a cut that will likely never come to fruition once special-interest lobbying groups step in to oppose them. Heritage's Bob Moffit points out that "Congress has a long and uncomplicated history of restoring the cuts it makes to Medicare."

Each of the health care reform proposals Congress is considering, including the supposedly bipartisan Baucus bill, contain these "details." And the cost of these programs is staggering -- and the Congressional Budget Office "estimates are all subject to substantial uncertainty." However, one certainty is that the Baucus bill's estimates will likely increase once it is merged with the other, much costlier proposals. 

Though proponents of the Baucus bill may tout bipartisanship and "continue to insist that they are not attempting a Washington takeover of health care," write Heritage's Kathryn Nix and Greg D'angelo, "their claims fly in the face of the facts." It is still a partisan mess -- and bad policy to boot.

Lawmakers should practice what they preach

Many members in Congress are currently urging the passage of the RESPECT Act and the Employee Free Choice Act. These misnamed proposals would impose greater restrictions on the private sector by pushing workers into joining unions.

The RESPECT Act would stifle private enterprise by reviving strict hierarchical management divisions. EFCA would abolish secret-ballot elections for union formation, allowing Big Labor to intimidate workers into joining. And the government would assume the authority to dictate contracts and business decisions at firms with newly formed unions. 

» Read The Heritage Foundations's research on these harmful proposals

Heritage experts James Sherk and Ryan O'Donnell point out Congress' hypocrisy in supporting these ideas. Lawmakers "argue that unions benefit workers and the economy," they write. "Yet Congress' own employees do not have the right to form a union -- making Congress exempt from the consequences of the very union laws it might pass."

Union membership has sharply declined over the last 25 years -- less than eight percent of private sector workers belong to unions today. This is because of advancements in employment laws and an increased focus on individual and specialized skills.

Non-union workers are evaluated on the basis of individual merit and performance. "Employees can get ahead by working heard." Union members' pay, however, is dictated through strict, one-size-fits-all contracts. There is little incentive to work hard or to outperform peers, which ultimately hinders productivity. 

Yet Congress continues to claim that unionization does not burden the private sector. If this is true, then they should offer the same availability to their own staff. "Congress should stop forcing private-sector employers to swallow a pill that Congress refuses to swallow itself," write Sherk and O'Donnell.

Other Heritage work of note

  • Paying nothing and getting something in return sounds like a good deal, but it's hardly realistic. Government, however, tries to operate by different rules. The non-partisan Tax Policy Center recently reported that 47 percent of American households will pay no income taxes this year. This is because top income earners are shouldering most of the burden. "The federal government can't continue to play Robin Hood, taxing from the few and handing goodies to the many," Heritage President Ed Feulner writes.  Feulner suggests a flat tax that applies the same tax rate to everyone, regardless of income.
  • Last week, it was announced that President Obama will receive the prestigious Nobel Peace Prize for his diplomatic aims and his vision for a nuclear-free world. "Mr. Obama may turn out to be a historic peace-maker," writes Heritage Distinguished Fellow Lee Edwards, "but today he is the commander-in-chief of two wars and confronts two stubborn nations -- Iran and North Korea -- that have their own agendas regarding war and peace." And while the President's vision of a nuclear-free world is noble, it should be followed up by real accomplishments, like those of President Ronald Reagan. But it's too soon to tell if this will come to pass, Edwards writes. "Really, it's early days."
  • There is a new Somali terrorist group on the rise -- Al-Shabaab. "They are more than just a local band of fanatics," writes Heritage national security expert James Carafano. "They may be plotting the next 9/11." The group aspires to become a world-class terrorist group and has strong ties to Osama Bin Laden, thus strengthening the global Islamist campaign. Countering this threat requires diligence and sound intelligence, Carfano argues. "In particular, we are going to need the tools authorized under the Patriot Act which have helped foil at least 26 intended attacks on the U.S. since 9/11."
  • Several businesses stand to profit from a global warming plan that makes energy more expensive. Heritage expert Daniel Holler explains that "while businesses are jockeying for position in the debate over global warming, the economic consequences of cap-and-trade would hurt everyone." Heritage calculations find that cap-and-trade will lead to: 1.9 million fewer jobs in 2012; $9.4 trillion lost in economic growth by 2030; and a 90 percent increase in energy prices by 2030. Unfortunately, "none of this is likely to change the Senate's debate" over cap-and-trade legislation.

In other news

  • Once again, President Obama has made a lofty and implausible promise to the American people: jobs for everyone. It's perhaps worth noting that the administration's "stimulus" package, which was intended to stem job losses, has failed to stop the unemployment rate from rising to nearly ten percent.
  • The political crisis in Honduras may soon be over. President Manuel Zelaya, an ally of Venezuelan strongman Hugo Chavez, was removed from office for violating his country's constitution.
  • Senate Democrats are looking to boost payments to doctors in their health care "reform" legislation. This change could tack on an additional $247 billion to the proposal's already hefty price tag.

Coming up at Heritage

To attend these or any other events at Heritage please RSVP at Heritage's website. Or you can view these events live online. All times are Eastern.

  • On Friday, October 16 at noon, author Herman J. Obermayer will discuss his new book Rehnquist: A Personal Portrait of the Distinguished Chief Justice of the United States.  

Amanda Reinecker is a writer for MyHeritage.org—a website for members and supporters of The Heritage Foundation. Nathaniel Ward, the Editor of MyHeritage.org, contributed to this report.