My last blog was flagged because someone interpreted the message wrong. I did not advocate taking over 25% of our GDP by the government I advocated cutting the revenue spent on health care by 6% of GDP, creating a flat tax for Social Security, limiting the taxes collected to what we only need (balanced budget for Social Security) and cutting $3.6 trillion from the Federal deficit.
Honorable President Obama
My goal has always been to bring the health care industry in line with what it gives to society and what it costs society. To this end I have worked to reduce the overall costs of health care by a trillion dollars a year for both private and public expenditures and move these funds into the manufacturing sector of our country. Along the way I have uncovered many harmful financial practices.
When the Medicare/Medicaid programs first started the health care costs represented 6.5% of our GDP; the health care costs have now moved to 18% of GDP. I find it completely unacceptable that one of the largest industries was able to grow this big because it has received special treatment by the Federal and State governments, by not enforcing our antitrust laws. To stop this in the future the McCarran-Ferguson Act must be repealed.
When the Social Security System was first introduced the original policy was to keep all the trust funds separate from the general tax funds. This policy did not last long and the funds were co-mingled with other federal income taxes and utilized to pay for the government’s expenditures. We now owe over $3.6 trillion to this fund and the only way to make up this obligation is to tax the same financial groups which originally paid into the fund. Although these obligations are owed for future payments, we should write off this $3.6 trillion and only tax our citizens for what is need for immediate distribution. Over a long period of time, the tax has become a tremendous burden on the middle class, with the actual results of wiping out a great portion of the Middle class.
This is completely unacceptable; the Social Security tax has to be converted from a regressive tax to at least a flat tax and have the higher income individuals pay their fair share; Keep in mind the higher income individuals benefited more when the Social Security funds were utilized to run our government, defend our country and secure our freedom. The benefits of such a tax are to lessen the burden on the middle class and lessen the burden on employees, place larger sums of money in the groups which will spend them.
I have also found it incredible that in the private health care sector the premiums charged by the health insurance companies are determined by what the health care providers charge. The hospitals in this country are now writing off 85% of the patients’ billed amounts, but the insurance companies determine their premiums on what is billed rather than on the actual 15% paid. If the health care providers were to bill the actual amounts collected, the health insurance premiums would be lowered by 85%. This tremendous reduction would not lower the quality of care received by the individual but give businesses a tremendous reduction of employee costs.
Roy J. Meidinger