A Tax is a Tax is a Tax

by: Matt Stoller

Fri Nov 30, 2007 at 10:21


healthcarestas.jpg

The data is from a May, 2007, WSJ/Harris Interactive Poll on health care.

Polling is a snapshot of how people respond to simplistic questions, but there are a couple of key notes here.  One, the public is extremely leery of using taxes to pay for universalized systems of health care insurance.  Two, the public is not leery government involvement in the form of subsidies and public health plans to provide insurance for those who don't have it.  Three, the public is not sold on breaking the employer-health care link. 

Matt Stoller :: A Tax is a Tax is a Tax

All of this makes sense.  96% of voters are insured, since the uninsured are younger, less affluent, and less likely to vote.  That means a 'universal' system is inherently less appealing for political decision-makers and voters; as the voting universe shifts to a younger and less insured population, this will change, but we're not there yet.

If 96% of voters are insured, why would voters put their own coverage at risk in return for a tax hike?  At the same time, voters are not averse to government helping those who aren't insured as long and as long as the tax word isn't used.

This is the logic behind the Edwards/Clinton people, who think that by avoiding the tax word and substituting 'mandate' in there, they can get around the stark opposition to universal health care in the single-payer mode.  They believe that if you create a public option that competes with the private option, and then mandate that those who are not insured buy into it or into a private option, it will naturally gravitate to a single-payer system.  The public option, which will essentially become the single-payer entity, is supported by the 76% of the public who want people with no access to insurance to get some from the government.

Obama is attacking part of this logic, and Paul Krugman echos Ezra Klein's attacks.

Third, and most troubling, Mr. Obama accuses his rivals of not explaining how they would enforce mandates, and suggests that the mandate would require some kind of nasty, punitive enforcement: "Their essential argument," he says, "is the only way to get everybody covered is if the government forces you to buy health insurance. If you don't buy it, then you'll be penalized in some way."

Well, John Edwards has just called Mr. Obama's bluff, by proposing that individuals be required to show proof of insurance when filing income taxes or receiving health care. If they don't have insurance, they won't be penalized - they'll be automatically enrolled in an insurance plan.

What Krugman doesn't mention is that the Edwards plan does say the government will use collection agencies and wage garnishment to enforce payment for the plan in which you are automatically enrolled.  While there's no data on this option, I imagine it won't be too hard for insurance companies to equate this with a tax and use that to defeat any parts of the plan they don't like.  What is the difference between the government sending my forced debts to a collection agency and sending me to the IRS?  Isn't the IRS just a big public collection agency?

Kevin Drum and Matthew Yglesias have more.

Obama is being attacked over health care by both Edwards and Clinton, which is a slightly new wrinkle in the Presidential debate.  As Chris noted, none of them have faced real attacks yet.  This is especially true of Obama, who is still a cipher.  It's not clear to me how an attack on Obama over health care and Social Security would go over.  Based on what I saw during the residual forces fight, and the lack of movement against Clinton, it seems unlikely that policy differences matter.  The blurring of the lines between the candidates on ideological differences means that this debate might be subsumed into the 'let's find someone who can win, since all Democrats are better than all Republicans' frame.

At the same time, if Clinton and Edward really make Social Security and health care an issue for Obama, that might be enough of an anti-Obama character argument to make a difference.  That Clinton used health care in the debate to attack Obama and is pushing that in the press means that she might have polling suggesting as much.


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I have a question (0.00 / 0)
In a number of the debates yesterday about this,  a few people made the claim that Obama's plan excludes people from the public option.  Exactly what group of people are they talking about?  From my reading of his plan, the only group I can imagine would be the people who receive coverage by their employer who has opted for a private plan.  I don't think those people would be excluded from the public plan if they wanted to, but also looking at your figures, it doesn't seem like the majority of people would want to break that employer bond anyway.

I was one of those people (4.00 / 1)
I was going by Ezra Klein's criticism of the plan. Klein has written extensively about health care in general and Obama's plan in particular, and he's brought this point up again and again, that Obama's public option only allows the uninsured and self-employed to enroll. Given that Klein is a well-known health care blogger and has discussed this numerous times with the Obama campaign, I tend to trust him on this point. And if Obama is also fighting against mandates, it's an even bigger problem for his public option.

If I'm wrong, I'll happily eat crow.

Join us at the Missouri community blog Show Me Progress!


[ Parent ]
Love that 96% number! (0.00 / 0)
It's surely a critical part of the political model prez candidates are working on in devising healthcare policies.

(I don't suppose you've got a cite for it, by the way?)

It would, for example, be a good reason pro bono publico to focus less on the uncovered 50m (or so) and more on the crapitude of the coverage of those who are covered.

(In a very special meaning of the word!)

But why would Dem prez candidates do that? They care about getting elected, and fuck pro bono publico!

If 96% of voters think they're covered, and don't focus on the quality of coverage, candidates would surely prefer to let sleeping dogs lie?

(Given, that is, that they are mostly unlikely to be able to do anything about the quality issue.)


That's what's bizarre about all of this. (0.00 / 0)
Where are the polling questions on the issues that the 96% is presumably invested in, e.g. healthcare cost and quality? 

[ Parent ]
Cost and quality? (0.00 / 0)
What about the exclusion of coverage for pre-existing conditions?  Huge discounts given on rates for the big corporates while little businesses pay much more?  The difficulty to obtain coverage in some states for businesses without employees, e.g. the one person startup (or price gouging for same)?  Portability of insurance?  Hit or miss exclusion of non-covered treatments or drugs?

Maybe some of this is meant by quality but I am not sure.  The problem is that even for the 96%, people are one pink slip from being covered to being left out in the cold.

Modifying ERISA to get more and better regulation of HMOs would also be a winner.


[ Parent ]
The 'Great American People...' can be fickle... (4.00 / 1)
when asked what they want.

As to healthcare I see your poll with one of my own which says that:

The American people know something is rotten....and they have for fifteen years.

This is pretty solid stuff and shows that, once again, there is a huge disconnect between 'Versailles' and the People. Were it not for The MeatGrinder this issue would be paramount in the voters minds; as it is, I believe a bold plan which covers everyone in a not-for-profit system a winning card in this election. I also do not buy the above polls conclusion that folks won't pay more in taxes.

If the question was, Would you rather pay the government less money than you now pay your insurance company?' this is the goal of the Edwards plan, what do you suppose the answers would look like?

Peace, Health and Prosperity for Everyone.


Worst of both worlds? (0.00 / 0)
The first option to increase taxes to include more people is Medicare and Medicaid is the worst of both worlds because it will be very costly and won't even accomplish universality of health care. It doesn't solve the problem and even makes it worse. Medicare and Medicaid have HUGE holes. Medicare covers old people. Medicaid covers children of the poor and poor pregnant women. These programs vastly exclude most of the population. It is no wonder that that would poll horribly.

I you want health care, work hard. If you want universal health care, vote for liberals.

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