{In a speech earlier this week, Speaker Nancy Pelosi proposed that the Democrat’s government-run health insurance proposal be renamed from the “public option” to the “competitive option.” The government-run insurance in H.R. 3962 is anything but competitive. It would not pay state or local taxes, would not be subject to lawsuits, would not have to abide by state mandates on coverage, and would not negotiate prices with doctors. In short, the plan is not competitive on any level. Should this plan become law, it is likely to drive private competitors out of business and quickly lead to a single-payer system where the government is the only choice for healthcare.}

Reid Offers Dubious Choice to the States

Senate Majority Leader Harry Reid (D-NV) has introduced a healthcare reform bill combining concepts from two separate committees. The new legislation would allow states to “opt-out” of the public option plan. Reid himself did not state that the legislation has the full support of Senate Democrats, as the opt-out provision is a new concept that is not easily understood. The legislation imposes a broad array of new federal taxes, and it is not clear whether businesses and individuals in opt-out states would still be subject to these taxes. In all likelihood, the state would opt-out of the benefit while their citizens continue to pay into the plan. Already, states have the ability to opt-out of various federal programs but they do not have the option of having a portion of citizens’ tax receipts returned. In actuality, no state would opt-out since taxpayers would just see their contributions flow to other states without any sort of compensation.

When Will the American Taxpayer Be Repaid by the Car Companies?

House Republicans this week joined on a letter to President Obama requesting more information on the bailout money provided to General Motors. According to a recent statement from former “Car Czar” Steve Rattner, the American taxpayers’ stake in GM is $25 billion. However, the administration has provided $49 billion to the company. The letter requests the President to explain this discrepancy and to release minutes from his Auto Task Force meetings. Also, the letter requests more detailed information about the finances and operations of GM—the same type of information that would be provided to shareholders in any other major company. The administration has been less than forthcoming about the public’s state in the automakers. We need to see a concrete plan for getting back taxpayers’ money and letting GM sink or swim on its own merits.

Senate Moves to Extend Home Buyer Tax Credit

The Senate may soon consider legislation to extend the first time home buyer tax credit past the November 30 expiration date. This $8,000 credit is providing a needed stimulus to an especially hard hit sector of our economy. The Senate is investigating a credit extension that would phase out over a period of months rather than cut off all at once. I hope such an extension can contribute to restored confidence in the market while helping families buy their first home.

Quote of the Week

“A Ponzi scheme of the first order, the kind of thing that Bernie Madoff would have been proud of.”
--Sen. Kent Conrad (D-ND), describing the CLASS Act, a bill to create government insurance for long-term care that some Democrats want to include in the larger healthcare reform package.