Democrat Senator Max Baucus (of Montana) revealed his idiotic health care plan yesterday. Among the goals of the plan are to lower health care costs and extend coverage to millions of–but not all–uninsured Americans and legal immigrants. Democrats say that under his plan no personal tax increases will be required and that 94% of all Americans will be covered, leaving 6% uncovered. Health insurance coverage will be mandated for all and those who refuse to pay for it themselves will be subsidized by the government. Health insurers will be forbidden from denying coverage for pre-existing conditions and will not be able to impose a lifetime cap on benefits.

Let’s examine this plan and reveal the faulty logic of the dysfunctional Democrat mind.

How will all this be paid for under the Democrat plan? By raising taxes on health care insurers, medical device makers, drug companies, and medical labs.

Democrats will use the revenue from targeted industries to subsidize insurance for those who do not want to pay for it.

Raising taxes on companies leaves them with less money. Higher taxes reduce the rate of return on investment. In order to stay even, which every company will attempt to do, they will raise their prices and pass along the tax increases to consumers.

The cost of health care will increase because of the higher taxes. This will increase the government’s cost of subsidizing health insurance. The government will then need to increase taxes on the targeted industries to cover the higher cost of health care. The targeted industries will pass along the increased taxes to consumers, increasing the government’s cost of subsidizing health insurance. The government will then need to increase taxes on the targeted industries again, which will increase their costs which will be passed onto consumers again.

See how stupid Democrats are?  They think raising tax expenses on the health care industry will lower costs when it will actually increase them.  Baucus’ plan essentially pays for subsidized health insurance by driving up the cost of insurance, creating a never-ending loop of tax increases which will be passed on to consumers.  That’s liberal logic for you.

Max Baucus Health Plan Article