Should we repeal ObamaCare? Should we defund ObamaCare? How would repealing ObamaCare or defunding ObamaCare affect the country?
The Effects of Repealing ObamaCare or Defunding ObamaCare
If the Affordable Care Act was repealed or defunded, especially now that it’s “the law of the land” (ie. it was upheld in the Supreme Court in 2012), the effects would be massive to say the least. For starters since so much of the health care reform law is already implemented, many aspects would not just go away overnight.
Some of the parts of the law that could go away overnight if the ACA was repealed include the majority of the new benefits, rights, and protections like the protections for the 1 in 2 Americans with preexisting conditions. Repealing those protections would do little to curb federal, state, or personal health care spending, but would be a major blow to new consumer rights and protections in regard to healthcare.
Loosening rules on insurers may decrease premium growth in the long term, but at this point there is little chance insurers would actually decrease premiums regardless of whether the ACA was repealed or not… in fact the loss of millions of ObamaCare customers might just send the Market into chaos leading to higher premiums in the short term.
The estimated cost of repealing the law could be as much as $6.2 Trillion (over the next 75 years) according to a 2013 report by the Government Accountability Office ($6.2 trillion isn’t an exact number, it is an extrapolation of a worse case scenario based on this report).
A recent June 2015 report from the Congressional Budget Office showed a $137 billion net increase to the deficit over the next decade if the ACA is repealed (a little less jarring and more exact short term effect on the deficit), plus up to 24 million being uninsured by 2024.
The reason repealing the law adds to the deficit rather than reducing it is because the bulk of the law actually curbs healthcare spending and takes in revenue, while only a small part contributes to spending and of course a full repeal means doing away with all the reforms, not just subsidy spending. Specifically Medicare reforms do a lot to bring down long-term Medicare spending and in general healthcare spending was one of the major driving forces behind publicly held debt and an increasing deficit prior to the passing of the Affordable Care Act. Learn more about ObamaCare, healthcare, public debt, and the deficit here.
The bottom line: Repealing the Affordable Care Act (ObamaCare) would result in a net increase to the deficit and lead to tens of millions being uninsured.
Reforming the ACA, Instead of Repealing it
On this page we hope we make the point that repealing or defunding the law is a bad move. This isn’t to say that we believe the law is perfect, in fact we strongly support reform and think there is lots of room to improve the law. We simply think that a full repeal is short sighted and drastic answer to solving the very real healthcare problems we face in the US.
Below we take a closer look at the repeal and defund movement to continue to get to the bottom of what repealing, defunding, replacing ObamaCare really means.
What Would Repealing ObamaCare Cost?
To understand what repealing the Affordable Care Act would cost it’s important to understand a few key points:
- The estimated net cost of ObamaCare’s insurance related provisions is $1.35 trillion (the gross cost of ObamaCare is $1,993 offset by $643 billion in revenue for 2015–2025).
- The estimated cost of repealing the law is $6.2 Trillion (over the next 75 years).
- The key to understanding the real impact of the ACA is understanding that the bulk of the law actually curbs healthcare spending and takes in revenue, while only a smart part contributes to spending.
- Typically the spending and revue related provisions are the only things discussed by repealers, but this is partially due to making talking points easy to swallow. In truth even the GOP replacement plan acknowledges that the Medicare reforms are working, and leaves that part of the law in place (despite repealing the majority of other non-spending related protections).
- Don’t believe us? That is fine, check out the law itself or read our summary of each provision in the PPACA.
Learn more about ObamaCare and the debt and deficit.
Was ObamaCare Repealed?
Was ObamaCare Repealed? The Affordable Care Act is still “the law of the land” despite over 60 attempts by Republicans to repeal parts of the law.
Is ObamaCare Government HealthCare?
The fact is ObamaCare is not Government healthcare and it does not replace private insurance, Medicare, or Medicaid. It’s an American mix market approach to health care reform.
The ACA does however subsidize and regulate private health insurance, and expands and improves state and Federal public healthcare programs like Medicare and Medicaid.
It’s important to note that from business tax breaks, to single payer, to vouchers, to tax breaks for the health care industry, both parties have supported subsidizing healthcare long before ObamaCare. The only real argument is who gets the tax breaks.
The problem with repealing ObamaCare is that ObamaCare isn’t one thing and can’t just be repealed with the push of a button. Sure it’s one law, but that law contains over 400 different sections, and even more provisions. Each provision does something unique to address the healthcare crisis in the U.S.
Repealing provisions in the Affordable Care Act like the elimination of pre-existing conditions would have a negative affect on every American who has ever been sick in the past (1 in 2 Americans technically have a pre-existing condition they can be denied coverage or treatment for). Many more provisions are actually working great and saving taxpayers money and improving the quality of care.
In fact, last year health care spending grew at the slowest rate on record (since 1960). Meanwhile, health care price inflation is at its lowest rate in 50 years. This is largely due to ObamaCare’s cost controlling provisions.
Check out what is in the Affordable Care Act for yourself. Read our summary of provisions in ObamaCare. Given the size of the legislation even the summary itself is lengthy, but a quick read will point out a lot of provisions that are hard to argue with. Regardless of what side of the isle you stand on there is a lot right with the law. If you are going to oppose the Affordable Care Act, make sure to support a movement that does this in a way that helps improve healthcare reform and the country forward.
Repealing subsidies will leave millions of families without access to affordable care. It would mean less federal spending, but if taxes are cut with subsidies it would have much less impact on spending. If tax breaks and subsidies are given to employers, instead of people (like in the recent GOP replacement plan), then the whole thing has nearly a “net zero” effect. In other words, it wouldn’t even affect federal spending or government intervention.
The Impact of Repealing ObamaCare
Back in 2014 the CBO did a report at John Boehner to find out the budgetary impacts of an “ObamaCare Repeal” bill. The conclusion was that repealing the healthcare law fully would both increase the deficit and increase federal spending while leaving tens of millions uninsured. Cost estimates were between $100 billion for ten years and $6.7 trillion for 75 years. Again this is largely due to the fact that most of the law is unrelated to spending.
FACT: Healthcare spending, not ObamaCare is the driving force behind America’s healthcare problems. Aside from the uninsured rates, this was the main reason healthcare reform was passed in America.
The concept of defunding ObamaCare faces the same problems as the repeal movement. ObamaCare isn’t one thing, it’s a thousand plus pages of provisions. Some of the provisions require funding, while others don’t. This means the provisions that don’t require funding will be in play regardless.
Some provisions that do require funding may hit a sore spot with some opponents of “big government”, however many provisions are little contested, and are much needed fixes to a healthcare system which has had a exponential need for reform over the years.
The replace ObamaCare movement sounds like the most logical one on the surface. Unfortunately the replacement plan so far is a 9 page PDF that fails to address most of the law and is primarily just a rant about repealing. You can read the replacement plan here and find out what parts we think are smart, and what parts seem “half-baked”.
Using Funding as Leverage For the Repeal ObamaCare Movement
A group of conservatives (not the Republican party as a whole) tend to use funding as a leverage for cutting public programs like food stamps, Medicaid, the Affordable Care Act, and other spending related laws that help to strengthen the “social safety net”. Defunding select provisions of laws don’t stop them from existing, instead it stops the programs from being effective. This gives opponents more leverage to declare both the administration in office and the programs failures, but doesn’t do much for reforming them or saving the country money. In fact this tactic leads to higher costs as related industries respond to the uncertainty and chaos.
While the defund ObamaCare movement may be short sighted and politically motivated, there are many provisions that could be improved upon. For instance a restriction on subsidies for working families.
Employers can offer insurance that costs as much as 9.5% of an employees income (not counting family members) and that is still considered affordable. This provision makes it so other family members cannot receive marketplace subsidies, creating an environment where they technically have affordable coverage, but in practice are spending well above the standard 8% threshold of affordability that families without work based insurance enjoy. This would be a constructive part of the law to address.
We urge you to read our section-by-section Summary of Provisions of the Patient Protection and Affordable Care Act to get a better understanding of which provisions are actually in the law.
Pros and Cons of Repealing ObamaCare or Defunding ObamaCare
Here are some of the pros and cons of repealing or defunding Obamacare.
In short, repealing or scaling back the spending parts of the law only (assuming we ignore the cost associated with undoing all the new changes) would take away many new rights and protections, leave millions without insurance, but potentially allow us to cut some new taxes and lower some peoples healthcare costs.
Keeping the spending provisions in the law as is will add additional costs, but will improve the quality of care, decrease spending in healthcare, and give tens of millions access to health insurance.
A logical stance therefore is to not push for a full repeal, or full support of the law, but rather to deepen your understanding of the law. Reforming certain provisions could improve upon the root issue of US healthcare, the underlying costs.
|Pros of Repealing ObamaCare||Cons of Repealing ObamaCare|
|You Don’t Have to Obtain Insurance or pay a fee.||1 in 2 Americans can be denied health coverage or treatment because they had been sick in the past.|
|Less taxes on top 2%.||No free or low cost insurance for those making less than 400% of the Federal Poverty Level through the Health Insurance Marketplace.|
|Businesses with over 50 full-time employees don’t have to insure full-timers come 2015.||Businesses with less than 25 full-time employees won’t get tax breaks of up to 50% for the cost of their employees health insurance on ObamaCare’s Health Insurance Marketplace. Today, almost half of America’s uninsured are small business owners, employees or their dependents.|
|No cuts to Medicare or Medicare Advantage.||Medicare goes unreformed and continues to bankrupt our country.|
|Tax payer dollars are not used to subsidize healthcare.||Tens of millions of our nations poorest including millions of children go without health insurance. The majority of people without health insurance are poor working families.|
|ObamaCare, big Government, and President Obama are proven to be unsuccessful.||Obama had little to nothing to do with the law in the first place…. The law was written by groups from every walk of life and has been in the works for decades. Since many of the ideas in “ObamaCare” are taken from Republican suggestions on how to reform healthcare, we are left with no real ideas for how healthcare reform can work. If nothing is done HEALTHCARE COSTS WILL BANKRUPT AMERICA over the next few decades.|
|Big business saves big money.||People who work for companies like McDonalds and Taco Bell go without health insurance.|
|Republicans get leverage to cut more big Government programs and the social safety net. ObamaCare not working equals proof that big Government doesn’t work.||Gender discrimination comes back, young adults can’t stay on their parents plan until 26, we continue to ignore wellness and prevention, the list goes on.|
|We don’t give the program a chance to work, therefore people don’t understand how much it helps them. This gives Republicans a lot higher chance of winning seats moving forward into the next election cycles.||We don’t give the program a chance to work and the American people never realize what the Affordable Care Act does for them.|
|Less Costs to the taxpayer||Most of the new taxes are on high earners, large businesses, and health care companies. Most of these companies see a net profit because of the law. Very few taxes impact the middle class whatsoever.|
Fact: ObamaCare has almost nothing to do with President Obama, he simply signed the bill into law. The law is really called the Affordable Care Act and is a bi-partisan health care reform law that helps the majority of Americans in countless ways. If you really don’t like it, chances are you don’t really know what it is. Read ObamaCare Explained to get some unbiased facts on what the program does before you support the house in defunding ObamaCare or repealing ObamaCare.
Stop: If you have ever been on record as being sick or make less than 400% of the Federal poverty level ObamaCare is trying to help you. Find out how it can help you, your family and your business before you support its opposition. Read ObamaCare Explained
The Irony of Costs
Although opponents of the law often claim the law costs too much, the Republican budget for the next ten years relies heavily on money generated from ObamaCare to function. Without the trillion dollars in revenue the Republican budget falls about $400 billion short of balance in the tenth year. The truth is both parties like to spend, the argument they are having isn’t about spending, it’s about what to spend the money on. Republicans want to funnel money to businesses, Democrats want to funnel it to people.
Republicans Don’t Want to Lose Their Protections Just Yours
As a way to demonstrate that the protections contained in ObamaCare were something that no one would want to lose, Democrats introduced an amendment in January 2011 that would have forced members of Congress to forgo the same protections that Republicans are seeking to eliminate for their constituents. The protections suggested for elimination included gender-based premium rating, prohibiting insurers from discriminating against people with pre-existing conditions, and allowing young people to remain on their parents’ health plans until age 26. As expected the amendment failed along party lines.
They Know They Can’t Make the Law Go Away!
There is no gentle way to say this, most of the higher-ups who are pushing for the repeal of ObamaCare know the law won’t just go away. They also know a portion of Americans don’t like Obama and don’t understand the law. They are using this as leverage to play politics with health care reform.
It’s OK to stand behind them, but we at ObamaCareFacts.com (two average small business owners who run this site) do understand the law, and we would put our money on the fact that if we sat down with you for 20 minutes and explained what it could do for you and your family, that you wouldn’t opposed 90% of what it does… And it’s the other 10% we want those against the law to focus on.
Does the law need more work? Sure it does, but that can only happen if we come together. Bickering over talking points that are meant to play to our irrational fears about something we don’t understand, and inciting our emotions, will only lead us further away from real solutions.
ObamaCare is Essentially The Same as the Nixon, Clinton, Ryan, Romney, Etc Plan
The truth is ObamaCare isn’t so different from past health care reform plans put forward by Republicans or other Democrats.
What Can You do to Stop ObamaCare?
If you don’t agree with the ACA, you should pick out the provisions in the law that you don’t agree with, and then vote for the politicians who want to reform that aspect of the law. Let’s say you own a business with the equivalent of over 50 full-time employees, and don’t want to provide full-timers with insurance come 2015. It is your job to support the reformation of the employer mandate. Fighting the law as a whole is a losing battle, and will do nothing more than stall congress and create a big mess. Demanding real reforms, on the other hand could bring about real change.
The complex bill has already changed many aspects of how our healthcare system works, and has already employed tens of thousands of Americans. Those changes can’t be done overnight. Some of the protections, hard won through the law, wouldn’t be so easy to take away either. The further we get down the road the harder the bill is to repeal. The truth is any effort to repeal ObamaCare at this point would likely end in billions of lost dollars, more costly health insurance, and a giant mess in congress. However those who strongly believe that the law must go, are willing to risk that and plan to defund ObamaCare anyway.
Repeal ObamaCare or Defund ObamaCare by “Starving the Beast”
“Starving the beast” is a term used for defunding programs or institutions (such as the Federal Government).
The idea is to take away funding from public programs until they “break”. Defunding key parts of a program can diminish it’s effectiveness, allowing opponents to make a case that it isn’t working.
In regards to healthcare the tactic, while good for certain politicians and corporations, won’t do much except cost the tax payer money, make healthcare less accessible, and stall other legislation in congress.
Who Supports Defunding ObamaCare?
According to a August 2013 survey from the nonpartisan Kaiser Family Foundation, fifty-seven percent of Americans said they disapprove of the proposal to cut off funding as a way to stop the implementation of the Affordable Care Act.
There are clear partisan divides — 6 in 10 Republicans say they approve of the idea, while just 15 percent of Democrats and 39 percent of independents support it.
FACT: Ironically, 6 in 10 uninsured republicans could get free or low cost health insurance through the health insurance marketplace.
Big Business’s Efforts to Repeal ObamaCare and Defund ObamaCare and Why?
The fact is, a lot of the defund and repeal noise comes from big business. Through superPACs and lobbyist, some “big businesses” are behind a lot of the anti-Obamacare campaigns.
Big Businesses (not all big businesses obviously) are going after ObamaCare, as they stand to lose billions in taxes and control of employees via benefits. Having to provide health insurance to full-time employees stands to put a big dent in any companies profits whose model doesn’t currently involve offering insurance.
Of course, these companies are focused on the bottom line, and as such can hardly be blamed for not wanting to help fund ObamaCare. They do gain benefits from the law such as healthy and happy workers which can lead to worker retention, but they will also be required to spend millions of additional costs.
Big Business Pay Millions of Dollars to Spread the, “down with ‘Big Government’ message. Don’t be fooled, this is often just a reverse manipulation tactic to get you to give up the protections of Government and Government run programs like ObamaCare.
NOTE: Some big business leaders simply don’t agree with public programs on an idealistic level. The driving force behind anti-public-program movements isn’t always capital or control, sometimes it’s just ideology.
How Would Repealing ObamaCare Help You
Not all groups stand to benefit from ObamaCare. Here are a few groups who may have reason to want to repeal the law.
- If you are a young and healthy male without health insurance you will help to foot the bill for others to be covered. That being said over 80% of young people stand to get free or low cost health insurance through the health insurance marketplace.
- If you just barely make over the 400% of the Federal Poverty Level you may higher premiums and there is a chance you will pay a larger percentage of your income then those making less or more than you. Find out the cost of ObamaCare.
- If you own a big business or work for one you may be in trouble. Big businesses who don’t provide health insurance will have to pay big expenses and will need to recoup the cost elsewhere. Workers of those companies may find their hours cut back to part time to avoid the company having to pay for their health insurance. It’s important to note however that the ideal of trickle down economics and the health of corporations affecting the country as a whole has largely been debunked as corporate backed propaganda.
- Some doctors and health insurance sales people do stand to lose business from changes in the law.
- The “top 2%” have to deal with additional tax increases to help fund ObamaCare.
- Those who wish to purchase high-end insurance must pay a 40% excise tax come 2017 and therefore will be paying more for insurance. The same goes for employers who wish to purchase high-end insurance for their employees.
Most other groups of Americans benefit greatly. It’s important to note that even those who pay more get better benefits, rights and protections. They also get the comfort of knowing they are helping others to afford healthcare.
Using superPACs to Influence Politics
Since the creation of superPACs, it’s become much easier to influence politics. Lucky for us there are some laws that say superPACs have to disclose certain information. We have used this information to collect a comprehensive list of who is funding anti-Obamacare campaigns to repeal Obamacare.
Anti-Obamacare ads outspend supporters 3 to 1. In fact over $100 million has been spent in in the last year, but where is it coming from?
Groups That Fund anti-Obamacare Campaigns and Influence Elections
The following groups (or the interests funding them) all stand to lose billions from health care reform. These groups have all directly or indirectly spent millions on Anti-Obamacare campaigns aimed at repealing Obamacare. This list represents groups that supported anti-ObamaCare campaigns leading up to the 2012 elections.
Aetna: $3.3 million to American Action Network (AAN) headed by former Republican senator Norm Coleman (R-MN)’ Aetna also gave $4.5 million in 2011 to the Chamber of Commerce which funds Anti-Obamacare campaigns.
AHIP (American Health Insurance Plans): This health insurance super lobby gave $87 million to unnamed advocacy organizations for “grassroots outreach, education and mobilization, print, online, and broadcast advertising and coalition building efforts”. This was done while they were discussing a deal in support of Obamacare with the white house. At that same time the Chamber of Commerce reported receiving $86.2 million (documented on a 2009 IRS filing) from an unnamed organization. This happened again in 2010 for an amount of $16.2 million. This accounts for 8.6% of total contributions and grants the chamber received for 2010.
ALEC: A Koch Brothers funded group that goes after Healthcare and other Government run services due to their Libertarian stance of Limited Government, Free markets and Federalism. They write laws that benefit corporations and fight against public interest.
Americans For Prosperity: This Koch Brothers funded group spent $9 million attacking Obamacare the day after the supreme court ruling.
Chamber of Commerce: Reported to have received hundreds of millions of dollars to fund Anti-Obamacare campaigns.
Crossroads GPS: Karl Rove’s 501 (c)(4) political group donated $3.7 million to the NFIB which used to money to fund Anti-Obamacare campaigns.
Elliott Management: This Hedge Fund (what Mitt Romney means when he says “small business”) directed by Paul Singer gave $3.4 million to Republicans this election season (helping get Paul Ryan in the position of VP). They donated $1,650 to the Democratic party.
Health Care Now: $6 million dollar Anti-Obamacare ad campaign. This group made $2 million the year they spent $6m on the ads, the year before they made less than a million. They don’t have disclose who gave them the money. However this media blitz came just before the supreme court ruling.
Koch Industries: David and Charles Koch, billionaire businessmen and oil men pledged $60 million to conservative efforts to defeat President Obama and his policies.
NFIB: Spent $10 million between 2010 and 2011. $8 million was donated by only 4 contributors. The year before their biggest contribution was $21k.
FACT: In 2011 the Koch Brothers had all of their companies and affiliates send out letters saying that if they didn’t vote for Romney they were fired. Romney wanted to repeal ObamaCare even though he knew full well how successful RomneyCare had been in Massachusetts.
We will continue to update this list as we uncover the facts on who wants to get rid of the Affordable Care Act. We will also be digging deeper into the pro-Obamacare-ers. For now check out this list of superPACs… Many of these groups fund anti-Obamacare efforts.
ObamaCare Congress: Government Shutdown over House Budget
In 2013 house republicans shut down the Government by refusing to pass the budget, unless it contained measures to defund and repeal aspects of the Affordable Care Act.
- If ObamaCare went away today (which it can’t, because it’s already a law and defunding a law doesn’t repeal it) you would lose all of your rights and protections, you would have to pay for maternity visits and check-ups, you could be denied for being sick, charged more for being a woman, dropped from your coverage for trivial reasons when the cost of your care got too great, and you would most likely not be able to appeal that decision.
- Today you have a ton of new rights, and even more are coming in down the road. The truth is for 85% or so Americans nothing the only thing happening over the next year is you are getting more benefits, rights and protections.
- Unless you are one of the 15% of Americans who doesn’t have insurance, not much will change for you moving into 2014, and a majority of those uninsured are simply getting access to free or low-cost health insurance. If you already have health insurance and are worried about the cost, the good/bad news is that your premiums already went up (if they were going to at all) and defunding ObamaCare certainly won’t lower them.
- If Obamacare sticks around it means that businesses get tax breaks of up to 50% to insure employees and it means that companies like McDonalds and Taco bell have to cover their workers. Tens of millions of lives are literally at stake, call your house representative and let them know what you think about ObamaCare and let them know if you agree with a Government shutdown.
Read this article from CNN to get a better understanding on the Government shutdown.
Government Shutdown Facts
The Defund ObamaCare movement led to a Government Shutdown on October 1st, 2013 as House Republicans refused to pass a budget unless it included repealing, removing, delaying, or defunding parts of the Affordable Care Act such as the medical device tax and employer mandate. The shutdown lasted until October 18th.
• The total cost of the shutdown is estimated at $24 billion by Standard & Poor’s. By comparison the medical device tax at the heart of the shutdown is estimated to bring in $20 billion by 2023. In other words the shutdown cost the American people $24 billion dollars in an attempt to remove a tax that would bring in $20 billion needed to balance the budget. No significant changes were made to the Affordable Care Act during the shutdown.
• Opponents of the law say that ObamaCare is an unpopular program that hurts Americans. The same was said about Medicare when it was implemented. Polls actually show that the more people understand what the law does, the more they like it. Since the health insurance marketplace opened up approval ratings of the law have been on the incline. Don’t listen to the rhetoric, keep reading and learn the facts about the Affordable Care Act.
• Congress isn’t exempt from ObamaCare and neither is the President. The President and his Executive branch can keep their plan because it was purchased before 2010, they have the same rights we do. The rest of congress and their staff have work based insurance, thus should be able to stay on their current plan as well. However, an amendment to the legislation made before it became law said they must use health insurance marketplace. They will use the marketplace, but since their staffers, making as little as $30,000 can’t get subsidies through the marketplace (they have access to employer based coverage) their employer (the Government) is allowed to cover part of the cost of their premiums. Since all members of Congress have been well aware of this since 2010, any other claim is a willful misrepresentation of the truth.
• Congress carefully designed ObamaCare so that it will not add to the budget deficit (in fact it cuts the deficit over a ten year period). The Republican budget actually relies on savings from ObamaCare including money from the Medical device tax and employer mandate (two key provisions that have been attached to the Senate passed funding bill for fiscal year 2014 by House Republicans).
• The Medical device industry profits off of sick people, more people with insurance means more money for Hip implants, MRI scanners and catheters. Like the tax on drug companies, the medical device tax is a fair tax on the sectors of the health care industry that will profit from the law. Since the tax applies equally to imported and domestically produced devices, and devices produced in the United States for export are tax-exempt. Industry analysts say innovation likely won’t be hurt either, nor will production costs.
• The claim that ObamaCare hurts small businesses is mostly untrue. Most small businesses will get access to cheaper health plans, get tax breaks and will not be responsible for the employer mandate. The requirement to insure employees means companies like McDonalds now have to provide health benefits to full-timers. Only .02% of businesses in the U.S. are affected by the mandate. Learn more about ObamaCare’s Employer Mandate.
• Although some companies have cut back employee hours to part-time status to avoid giving them benefits in anticipation of the 2015 employer mandate, companies like America’s largest employer Walmart have decided to embrace the law moving 35,000 part-time workers to full-time and covering them and their partners.
• Both the medical device tax and employer mandate help the majority of Americans without costing them anything and will result in millions of Uninsured working Americans getting health insurance.
State Level Tactics to Break Public Programs
An important and tricky concept to understand about “anti” tactics is the idea of moving things to a state level.
On one hand state rights are one of the most important aspects of our country. On the other hand, leaving some decisions up to state’s opens the door for unequal treatment of people and unequal laws.
Essentially it’s much easier (and cheaper) to influence state politics then federal politics. Groups like ALEC are well aware of this, and work around the clock to pass very specific state laws that work against federal protections.
For instance take Medicaid Expansion. The 2012 supreme court decision let ObamaCare stand, but states were able to opt out of providing Medicaid to their states poorest, without stopping their Medicaid funding.
Before the attempt to repeal ObamaCare all State’s had to implement Medicaid Expansion meaning up to 23 million men, women and children under the 138% Federal Poverty Level would would get access to insurance.
That number has dropped to 15.9 million since some of the State’s who needed it the most, decided it would cost too much to implement, despite over 90% of the funding coming directly from the Federal tax dollars. This means that State’s that support ObamaCare provide their residents with better access to quality affordable health care.
Like in the case of ‘right to work’ laws it is much easier to take away peoples rights on a State level than it is to influence the entire Federal Government. On the other side of this coin, state rights are one of the most fundamental aspects of our country.
The Federalist Idea of Healthcare Reform at a State Level Sounds Good, but Why?
Moving healthcare to a state level sounds good on paper, but the fact is that this tactic is not meant to provide healthcare to all Americans, it’s meant to make it easier to repeal Obamacare (and reject portions of the bill). For anti-Obamacare folks to repeal Obamacare as a federal law it would take Republican control of the majority of States, and the backing of the majority of Americans and their representatives.
Repealing Obamacare on a federal level takes a lot of politics and hundreds of millions of dollars spent via superPACs to back the right candidates and spread the right message. However “buying the vote” at a state level is much easier, especially now that Obamacare has become a very popular program in most parts of the country.
Perhaps ironically, perhaps not, the Federalist organization The Heritage Foundation (ALEC) helped to draft what is now ObamaCare some 25 years ago. They intended it to be used on a State Level, as in the case of RomneyCare. That same group now fervently backs the defund ObamaCare and repeal ObamaCare movements, as well as other organizations such as the tea party.
Defund ObamaCare: Why Take Power Away From Government?
Why would so many push to defund ObamaCare when Government programs like these are created specifically to help those same people? Programs and services like Medicaid, Social Security, ObamaCare, Unions, NPR, PBS(?), Education, etc cost Big Business billions in taxes every year. Other government regulations and protective programs, like the EPA, stand in the way of maximizing profit for big businesses by imposing regulations that decrease profit for the sake of human and environmental rights. While big business owners and investors may have every reason to want to repeal ObamaCare, the average American has hardly a reason outside of ideology.
More Big Business Manipulation Tactics
Moving public programs like Medicaid to a state level isn’t the only Big Business tactic used to defund ObamaCare or Repeal ObamaCare. Here are some other Big Business Facts you might not know.
• Every year Big Business gives hundreds of millions of dollars to fund political campaigns with the stipulation they support their interests. They use lobbyists and superPACs to do this legally.
• Big Business calls those who support Government programs “socialist” to make people think that these protections are un-American. This is a form of manipulation. The American Government was created to offer protections to the people for the commonwealth. It’s just rhetoric that helps them convince voters to stand against their own interests and support interests of big business.
• Big Business funds campaigns that use divisive issues like income (Medicaid), race, religion, patriotism, national security and women’s health services to divide the country in order to more easily control the people. Controlling the people is in their interest as it means they get to pay workers less and ensure worker retention by holding things like health benefits over workers heads. Unions were created in response to this type of behavior as a protection for the people. Notice these same people have been trying to dismantle unions ever since by calling them corrupt.
• A manipulation tactic used by politicians or big business to accuse someone of exactly what they are doing. So for instance: saying Unions are corrupt, takes Americas eye off the corrupt activity of the business, and it’s backers in political circles. Try to notice other instances where this happens.
• The other tactic, aside from just dismantling and repealing programs, is to privatize them. This idea of less regulation on the free market has the same basic end result. Take a public program and letting private interests profit from it and control it doesn’t really work, what it does do is take something that is in the public interest and give private interest a way to make money of it. It’s worth noting that in many ways ObamaCare doesn’t socialize healthcare, it just regulates private insurance. In many ways ObamaCare is a hybrid of a public and private program.
Did you know just about every Government program that benefits the people was attacked by Big Business backed political smear campaigns calling the programs communist and anti-American. They didn’t want us to have Social Security then and they don’t want us to have ObamaCare now
If the nation is in debt and the deficit is large, if big business has all the power and there is less protection from Government, if there are less taxes to run our country and no unions or social security or guarantee of healthcare it makes it very hard for your to ask for a raise, go on strike or stand up to your employer. In fact that would mean that the corporation you work for would be in control and it would be your new Government (see the events leading up to the great depression).
Repeal ObamaCare: Big Businesses / Small Business. Distorting the Truth Regarding ObamaCare? (superPACs)
The organizations and businesses with the most interest in blocking ObamaCare are the ones who will have to pay the most. These people / organizations are willing to fund influential people and sources of information to push their agendas (often with the use of superPACs).
It’s important to note that any business has enough money to fund a superPAC or other legal means of influencing an election is in the top 3%. In other words big business is funding a lot of what you hear about ObamaCare and small business.
Big Business Facts: Facts about the Businesses Who Want to Repeal and Defund ObamaCare.
Some of America’s 1% (Big Business owners) stand to lose Billions upon Billions from increased tax rates and mandates to insure their uninsured. Yet it only costs them Millions to fund defund ObamaCare / repeal Obamacare campaigns.
For instance in March of 2012 there was a vote to protect $24 billion in tax breaks for Big Oil. The 47 senators (43 Republicans, 4 Democrats) voting against the bill have received $23,582,500 in career contributions from oil and gas. The 51 senators (All Democrats) voting to repeal oil tax breaks have received $5,873,600. In other words the ones who received more money stood against the bill. This is exactly what is happening with Obamacare (and ever other government service you hear about needing to be eliminated from the EPA to social security to Unions).
•Taxes on rich people (capital gains and income) are, relative to history, low, so raising them would only begin to bring them back in line with prior prosperous period
• Dozens of rich entrepreneurs have already gone on record confirming that a modest hike in capital gains and income taxes would not have the slightest impact on their desire to create companies and jobs, given that tax rates are historically low.
• Big Business doesn’t trickle down wealth and jobs, small businesses create the most jobs (of course big business employees many Americans, as does Government) and consumers create wealth by spending money (often at companies owned by big business).
• Small businesses struggle or are unable to provide employees with benefits they would be given at larger firms, ObamaCare helps to offset this by increasing the tax rate on Big Business and giving tax breaks and credits to small businesses.
• 4 donors funded $8.5 million out of $10 million given to NFIB (National Federation for Independent Business) between 2010 and 2011. The NFIB funded the 2010 lawsuit against Obamacare using that money.
•The more divided the country is, the easier it is for Big Business to continue to push their agenda.
•The more workers depend on their (Big Business) employers for healthcare, the less likely they are to strike or quit.
Regardless of what our political stance is (it’s really a matter of income, not politics anyway), the facts stand apart from opinion. The fact is that 97% of small businesses and their employees benefit from Obamacare in regards to taxes and healthcare while some of the 3% of Small Business and Big Business do not. Therefore it is in the interest of Big Business to fight against ObamaCare by funding anti-Obamacare messages and in the interest of the 97% of businesses owners and 98% of Americans to support ObamaCare.
Repealing ObamaCare: The Politics of ObamaCare Taxes
In most cases healthcare reform isn’t a case of Democrats versus Republicans. Except, it has to be to some extent, after all the majority Democrats will continue Obamacare, while the majority of Republicans want to repeal ObamaCare or defund ObamaCare.
Those who want to repeal and defund ObamaCare are willing to hold up congress in the interest of “the top 2%”. Of course the top 2% do employee a large portion of workers, however part of what this group doesn’t like about ObamaCare is the amount of money it will cost to insure those workers. Another unmentioned aspect is the increased taxes on unearned income which helped to “rollback” some of the Bush tax cuts.
ObamaCare Taxes Fact Check: The actual “2%” is somewhere between 1.5% and 4.2% of tax payers (it depends on a range of factors, however the IRS and Census agree the number, is typically under 3%).
FDR taxed income over $400k at 92% and capital gains at 25%. Today income is taxed for $370k plus at 35% and capital gains at 15%. Obama’s new tax plan take those numbers back to the Bill Clinton tax rates.
The Clinton tax rates are 39.6% for incomes over $250k and capital gains taxes of 29%. Of course these additional taxes help to improve government services, create jobs and decrease debt by putting more money back into the economy (this is what happened after the Clinton tax rates were established).
The more tension there is between Red and Blue states the harder it will be for the people to band together and support the federal government. The less federal protections people have, the easier it will be for big business to control regulations, taxes, and the people as a whole.
One of he oldest tricks in the book is to divide the people in order to take control (divide and conquer). Government shared by the states and Federal government is what our Country was built on. Calls for less government may resonate with out ideology, but it’s important to understand the implications of following any leaders call.
During the time of the Civil war, slave ownership became such a big divisive issue that we went to war with ourselves. Since the Constitution and Declaration of Independence were drafted, there has been tension between the “Red and Blue” states as to how the Government should be run. Today some big businesses and politicians tend to strongly support the same ideas, “less federal Government and more free market”. These are the same ideas that tore the nation apart during the civil war, and led to the great depression of the 1920’s.
As with all things, the answer doesn’t lie on the radical left or right, but rather it’s lies in “common sense solutions” from “both sides of the isle” that address our very real issues of spending and access to healthcare.
Not everything in the health care reform law is great. Many Americans above the 400% FLP would be better off financially if the bill were repealed or defunded, however for most of us a move to repeal ObamaCare or defund ObamaCare would hurt our wallets, our healthcare and our Government as a whole.
Why Defund ObamaCare, Why Repeal Obamacare?