• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • The House Health Fix: Even Higher Job Killing Investment Taxes

    It takes investment to get sustainable economic growth. We can’t spend our way to growth. We have to save some of the stuff we make today and use it to create new, higher value, tomorrow. If we produce and consume it all, then our economy lives “hand-to-mouth” and we do not grow.

    Investing is risky. There is no guarantee that the investment will pay off. Investors weigh many possible scenarios when determining whether or not to make an investment. If the expected return on an investment does not meet an investor’s next best opportunity for his cash, he will forgo that investment.

    The expected rate of return compared is the after-tax rate of return. The higher the tax on returns, the more investments will be foregone. So why is Congress trying to discourage investment at a time when the economy desperately needs investment to start growing again?

    Because in order to get a deficit neutral score from CBO the legislators needed to find more ways to squeeze revenue from taxpayers.  Unfortunately increasing taxes from things that produce economic growth will cause the deficit to increase in a dynamic economy. Slower economic growth will result in fewer jobs and less tax revenue.

    As revenues fall, the government must either cut spending or borrow more money. As the government borrows more, there is upward pressure on interest rates. Higher interest rates can crowd out private sector investments, which further slows growth..

    The downward trajectory, the Senate and Reconciliation bill puts the economy on in the early years to pay for benefits in later years, are too steep to get out of. In just ten years, the Senate bill (without the large tax increases on investment), slow the economy enough to lose 690,000 jobs per year and add $755 billion to the debt. The Reconciliation bill then slaps the economy by increasing taxes on high-income individuals’ wages and on their growth producing investment income. A 2.9% tax on investment is estimated to cause interest payments on the debt to be $12.4 billion higher over just ten years and slows the economy further eroding household disposable income by an estimated $17.3 billion dollars per year. The Reconciliation bill is worse; it places an even higher 3.8% tax on investment income thereby increasing the after-tax rate of return threshold on those considering investing. When combined with the expiration of President Bush’s tax cuts, the tax rate on capital will be increased by over 50% for some taxpayers.

    With slowing growth and rising deficits, it is no wonder that Standard and Poor’s is warning the U.S. about down-grading its debt. People who say “all you need is your health” perhaps do not realize how difficult it is to get quality health care in an unhealthy economy.

    Posted in Obamacare [slideshow_deploy]

    21 Responses to The House Health Fix: Even Higher Job Killing Investment Taxes

    1. Billie says:

      Not in the best interest of the people. Doing everything possible to ensure the crisis' foreseen, going out of the way to create.

      KILL FREEDOM AND INDEPENDENCE, is the intelligence leading America. Demean, belittle, insult, accuse, assume, condescend free people, is the maturity level. In the meantime, lie, cheat, steal, burden relentlessly, those despised by the leader.

      The "white #@!@#&*)%??!!@#%^&&..privilege"d…by the way, isn't privilege earned? Why didn't any other color do what they could to earn it? In detail, what is it? I never heard of a color getting privileges…

    2. Ric, Lawton OK says:

      Can ONE GOP or talk show host point out the OBVIOUS when Pelosi or some Democrats say “the Republicans are defending the HC companies!”

      The facts:

      - Democrats cut a deal with health insurance lobby back in May just like they did with pharma! The Democrats are the buddies of insurance!

      - The democrats are giving the insurance firms 2.5 trillion in tax subsidies and 6 trillion in higher premiums plus 30 million customers who have to pay or go to jail! Can someone please tell me if you want to “curb abuses” how handing them 8 trillion in unearned money and 30 million new customers is “making evil insurance pay”?

      - The democrats are creating a monoploy market for 5 or 6 largest insurance firms (the other 1400 odd will be mereged or bankrupted)

      Now the Democrats get “theirs” for these goodies – they get to run HC THRU the insurance firms via regulation and control of their $$$…

      This is a CORRUPT bargin – govt HC imposed for a huge amount of $$$$!

      This is FACISIM pure and simple – private mangement/profit but govt/politcal control….

      We should defend free markets and the concept of insurance – we dont need to defend or remain silent on these absurb attacks!

    3. Ric, Lawton OK says:

      Here is something for all to think about….

      If the Senate HC bill is "deemed" passed by the House….

      Not only is that act UnConstitutional….

      BUT

      We will have a situation where a bill may become "law" (I use that term loosely because its Unconstitutional) when its EXACT TEXT CANNOT CURRENTLY BE PASSED BY EITHER CHAMBER!

      The Senate cannot even pass its own bill again thanks to Brown's election!

      So the House cannot pass the Senate bill on its own merit and neither would the Senate!

    4. Dave Forster, Elk Gr says:

      There is a general consensus as to what Americans are looking for in reform – affordability, accessibility, portability and quality. The current proposals in Congress, however, are so fundamentally flawed that they will actually raise costs when businesses can least afford it. By increasing taxes on businesses and discouraging flexible spending accounts, this legislation will lead to higher costs while threatening quality of care.

      Provisions in current health-care reform legislation are bad for business, bad for jobs, and bad for economic recovery. Congress should "start over," and have a truly meaningful discussion about reform.

    5. Karen Whall says:

      I don't understand, if all that is being proposed is unconstitutional, why is there no organization, such as Heritage, bringing charges against this administration??? We are all outraged at what is being forced down our throats but as individuals we cannot afford to bring a lawsuit, but there are organizations who have staff attorneys, pundits and judges who can!! Also, what about the insurance companies…why haven't we heard from a single insurance company during this entire debacle?? Where are their lobbyists? Where are there executives defending their rights as capitalists? If insurance companies go out of business, even some, what happens to our economic system? They are invested across the spectrum of our economy…This is soo ridiculous and we are screaming at the top of our lungs but no one is listening. Just exactly what is in this bill that is so important to the democrats that they HAVE to get it passed immediately, I may be paranoid but I am worried about just what kind of power this bill will centralize.

    6. Dale Cord Redondo Be says:

      THE LETTER EVERYONE IS TALKING ABOUT

      This has to be the email forward of the year! Please take a few minutes to read and absorb just what this woman had to say, and then hopefully everyone will pass it to their entire mailing list, and theirs to theirs until it circles the nation! Time is short and arrogance, stupidity and ignorance abound…

      The following letter read on Glenn Beck 's show, is rapidly circulating around the country. Americans everywhere identify with this 53-year-old woman.. She has given us a voice. Once you read this, you will want to forward it to all of your friends…

      GLENN BECK: I got a letter from a woman in Arizona . She writes an open letter to our nation's leadership:

      "I am a home grown American citizen, 53, registered Democrat all my life. Before the last presidential election I registered as a Republican because I no longer felt the Democratic Party represents my views or works to pursue issues important to me. Now I no longer feel the Republican Party represents my views or works to pursue issues important to me. The fact is I no longer feel any political party or representative in Washington represents my views or works to pursue the issues important to me. Instead, we are burdened with Congressional Dukes and Duchesses who think they know better than the citizens they are supposed to represent.

      There must be someone. Please tell me who you are Please stand up and tell me that you are there and that you're willing to fight for our Constitution as it was written. Please stand up now.

      You might ask yourself what my views and issues are that I would feel so horribly disenfranchised by both major political parties. What kind of nut-job am I? Well, these briefly are the views and issues for which I seek representation:

      One, illegal immigration. I want you to stop coddling illegal immigrants and secure our borders. Close the underground tunnels.. Stop the violence and the trafficking in drugs and people. No amnesty, not again. Been there, done that, no resolution.

      P.S., I'm not a racist. This is not to be confused with legal immigration.

      Two, the STIMULUS bill. I want it repealed and I want no further funding supplied to it.. We told you No, but you did it anyway. I want the remaining unfunded 95% repealed. Freeze, repeal.

      Three: Czars. I want the circumvention of our constitutional checks and balances stopped immediately. Fire the czars. No more czars. Government officials answer to the process, not to the president. Stop trampling on our Constitution, and honor it.

      Four, cap and trade. The debate on global warming is not over. There are many conflicting opinions and it is too soon for this radical legislation. Quit throwing our nation into politically-correct quicksand..

      Five, universal healthcare. I will not be rushed into another expensive decision that will burden me, my children, and grandchildren. Don't you dare try to pass this in the middle of the night without even reading it. Slow down! Fix only what is broken — we have the best health care system in the world — and test any new program in one or two states first.

      Six, growing government control. I want states rights and sovereignty fully restored. I want less government in my life, not more. More is not better! Shrink it down. Mind your own business. You have enough to take care of with your real [Constitutional] obligations Why don't you start there.

      Seven, ACORN. I do not want ACORN and its affiliates in charge of our 2010 census. I want them investigated. I also do not want mandatory escrow fees contributed to them every time on every real estate deal that closes — how did they pull that one off? Stop the funding to ACORN and its affiliates pending impartial audits and investigations. I do not trust them with taking the census with our taxpayer money. I don't trust them with any of our taxpayer money. Face up to the allegations against them and get it resolved before taxpayers get any more involved with them. If it walks like a duck and talks like a duck, hello. Stop protecting your political buddies. You work for us, the people. Investigate.

      Eight, redistribution of wealth. No, no, no. I work for my money. It is mine. I have always worked for people with more money than I have because they gave me jobs — and that is the only redistribution of wealth that I will support. I never got a job from a poor person! Why do you want me to hate my employers? And what do you have against shareholders making a profit?

      Nine, charitable contributions. Although I never got a job from a poor person, I have helped many in need. Charity belongs in our local communities, where we know our needs best and can use our local talent and our local resources. Butt out, please. We want to do it ourselves..

      Ten, corporate bailouts. Knock it off. Every company must sink or swim like the rest of us. If there are hard times ahead, we'll be better off just getting into it and letting the strong survive. Quick and painful. (Have you ever ripped off a Band-Aid?) We will pull together. Great things happen in America under great hardship. Give us the chance to innovate. We cannot disappoint you more than you have disappointed us.

      Eleven, transparency and accountability. How about it? No, really, how about it? Let's have it. Let's say we give the buzzwords a rest and have some straight honest talk… Please stop trying to manipulate and appease me with clever wording… I am not the idiot you obviously take me for.. Stop sneaking around and meeting in back rooms making deals with your friends. It will only be a prelude to your criminal investigation. Stop hiding things from me..

      Twelve, unprecedented quick spending. Stop it now.

      Take a breath. Listen to the people. Slow down and get some input from nonpoliticians and experts on the subject. Stop making everything an emergency. Stop speed-reading our bills into law. I am not an activist.. I am not a community organizer. Nor am I a terrorist, a militant or a violent person. I am a parent and a grandparent.. I work. I'm busy. I am busy, and I am tired. I thought we elected competent people to take care of the business of government so that we could work, raise our families, pay our bills, have a little recreation, complain about taxes, endure our hardships, pursue our personal goals, cut our lawn, wash our cars on the weekends and be responsible contributing members of society and teach our children to be the same all while living in the home of the free and land of the brave.

      I entrusted you with upholding the Constitution. I believed in the checks and balances to keep from getting far off course. What happened? You are very far off course. Do you really think I find humor in the hiring of a speed reader to unintelligently ramble all through a bill that you signed into law without knowing what it contained? I do not.

      It is a mockery of the responsibility I have entrusted to you. It is a slap in the face. I am not laughing at your arrogance. Why is it that I feel as if you would not trust me to make a single decision about my own life and how I would live it but you should expect that I should trust you with the debt that you have laid on all of us and our children. We did not want the TARP bill… We said no. We would repeal it if we could. I am sure that we still cannot. There is needless urgency and recklessness in all of your recent spending of our tax dollars.

      From my perspective, it seems that all of you have gone insane. I also know that I am far from alone in these feelings. Do you honestly feel that your current pursuits have merit to patriotic Americans? We want it to stop. We want to put the brakes on everything that is being rushed by us and forced upon us. We want our voice back. You have forced us to put our lives on hold to straighten out the mess that you are making. We will have to give up our vacations, our time spent with our children, any relaxation time we may have had and money we cannot afford to spend on bringing our concerns to Washington . Our president often knows all the right buzzwords like unsustainable. Well, no kidding. How many tens of thousands of dollars did the focus group cost to come up with that word? We don't want your overpriced words. Stop treating us like we're morons.

      We want all of you to stop focusing on your reelection and do the job we want done, not the job you want done or the job your party wants done. You work for us and at this rate I guarantee you not for long because we are coming. We will be heard and we will be represented.. You think we're so busy with our lives that we will never come for you? We are the formerly silent majority, all of us who quietly work, pay taxes, obey the law, vote, save money, keep our noses to the grindstone… and we are now looking at you.

      You have awakened us, the patriotic freedom spirit so strong and so powerful that it had been sleeping too long. You have pushed us too far. Our numbers are great. They may surprise you. For every one of us who will be there, there will be hundreds more that could not come. Unlike you, we have their trust. We will represent them honestly, rest assured. They will be at the polls on voting day to usher you out of office.

      We have cancelled vacations. We will use our last few dollars saved. We will find the representation among us and a grassroots campaign will flourish. We didn't ask for this fight. But the gloves are coming off. We do not come in violence, but we are angry. You will represent us or you will be replaced with someone who will. There are candidates among us who will rise like a Phoenix from the ashes that you have made of our constitution.

      Democrat, Republican, independent, libertarian. Understand this.. We don't care. Political parties are meaningless to us Patriotic Americans are willing to do right by us and our Constitution, and that is all that matters to us now.. We are going to fire all of you who abuse power and seek more. It is not your power. It is ours and we want it back. We entrusted you with it and you abused it. You are dishonorable. You are dishonest.. As Americans we are ashamed of you. You have brought shame to us. If you are not representing the wants and needs of your constituency loudly and consistently, in spite of the objections of your party, you will be fired. Did you hear? We no longer care about your political parties. You need to be loyal to us, not to them.. Because we will get you fired and they will not save you.

      If you do or can represent me, my issues, my views, please stand up. Make your identity known. You need to make some noise about it. Speak up. I need to know who you are. If you do not speak up, you will be herded out with the rest of the sheep and we will replace the whole damn congress if need be one by one.

      We are coming. Are we coming for you? Who do you represent? What do you represent?

      Listen. Because we are coming. We the people are coming.

    7. Pingback: What America Will Look Like If The White House Gets Its Way | The Foundry: Conservative Policy News.

    8. Pingback: The Aftermath of Obamacare: What America Will Look Like If The White House Gets Its Way | Fix Health Care Policy

    9. Pingback: The House Health Fix: Even Higher Job Killing Investment Taxes … | Chi 90

    10. Drew Page, IL says:

      To Karen Whall — We can't ask the courts to issue a restraining Congress from passing a law. Per the constitution, that is their job.

      I would love to see charges of bribery of a public official filed against Harry Reid for the outright bribery of Sen. Mary Landreau of Louisiana for selling her vote on health care reform for the $300,000,000 she obtained for her state and for the Cornhusker Kickback offered to Sen. Ben Nelson of Nebraska (even though the bribe attempt has been rescinded). But since the bribes were not cash amounts paid directly to those Senators, there would probably be no case. Political arm-twisting among members of Congress is as old as politics itself, and while some may consider this to be unethical, bribery blackmail or extortion, it has historically been a "quid pro quo" part of the legislative process.

      No, I'm afraid we will have to wait until the damage is done before any meaningful lawsuit can be filed claiming a violation of the Constitution. I believe the "Slaughter Rule" being considered by the House to be un-Constitutional, however, this would have to be tested in the courts, if in fact the House resorted to this legislative legerdemain.

    11. Pingback: A Trillion Dollars By Another Name | As The Geek Learns

    12. Pingback: Can someone recommend a specific humidifier for an area in a house of about 700 to 800 square feet.? | Warm Humidifiers

    13. Amber USA says:

      If the Health Care Reform Bill passes, we need to surround the representatives local offices and their homes. They have not listened to millions of citizens who have surronded Capitol Hill. Maybe this would wake them up!! We can not let up. They do not care about this country, why should we care about them. All they are doing is pushing us into Communism. If they want to live like that, then get the hell out of our country.

    14. Pingback: Does anyone do wire comb binding in the baltimore – washington DC area?

    15. Drake, virginia beac says:

      Continued evidence as to what is in store for this Great Country. Call it Conspiracy Theory or not, but each passing travesty against the People and the Constitution indicate the current powers to be are INTENTIONALLY trying to destroy this country and economy.

      We were warned, but we did not believe. We are seeing the tangible results of that warning. Do we still not believe?

      Fear monger? Not mongering when the facts clearly prove the point that We the People have plenty to fear form the government if this destructive course of action continues and goes unchallenged.

      This is not going to be pretty!

    16. Pingback: LifeGuard » Blog Archive » 3/21/2010 “A date which will live in infamy…”

    17. Bill Dayton, OH says:

      Laws don't mean anything if they are unconstitutional and now representative of the general public. We are fools if we continue to let this out of control government force us to buy healthcare, or anything else for that matter. It is time to say NO to a large out of control federal government. I have my doubts that Obama and his administation were legally elected, that he is a naturalized citizen, further if he is then he is a criminal by falsifying documents to obtain grant money from an organization that was established to provide funding assistance to students from foreign governments. He claimed then he was a resident of Indonesia. One way or the other he is guilty of at least one crime but my guess is there are many more crimes in his past. I will move to a state that handcuffs the Feds in matters of the violations of the Constitution. Crooked politicians, and crooked judges don't make the laws just.

    18. Pingback: Morning Bell: Congress vs. The American People | The Foundry: Conservative Policy News.

    19. Pingback: Morning Bell: Congress vs. The American People « Thoughts Of A Conservative Christian

    20. Barbara says:

      Heads up Americans!

      Some Americans will never believe this is happening to our country. What will it take and what can we as citizens do?

      Yes, I vote. I'm not happy when I go to the poll. I feel like I'm voting for the lesser of 2 evils. Where has ethics, honesty,conscience gone? we need to vote, we need better-qualified candidates to vote for, we need every American to take stock of what is going on the Health Care Bill is a sorry joke. It was the most important Bill of our time and yet our legislators choose to add fat, and more fat and finally the 3.8% tax on selling your home.

      There are plenty of people out there who will be financially hurt by this. The person who is 70"s now, retired, and downsizing could stand to be taxed $15,000 in addition to the capital gains tax. Where does the retirement dream come in–it's gone

      Will this person have enough for housing, medical expenses, food, just the necessities? After working and waiting for the Golden years! This is not fair to our seniors.

      I pray this is not going to turn us Americans into the new immigrants because I haven't decided where I'm going? Have you!!

    21. Pingback: South Korea–U.S. Trade Deal: Better Late Than Never | The Foundry: Conservative Policy News.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×