Now that the GOP controls the Congress but cannot override a presidential veto, the two arms of government must work together. They must find a middle ground that both can live with and might be actually better than either extreme position. Here are our three most difficult issues:
The Affordable Care Act is probably the most contentious issue between the two parties and the electorate, which is split in its support.
Liberals feel that everyone must have health coverage and that business and government should subsidize it. They believe that having coverage must be mandated and backed by mandatory fines to ensure compliance. The mandate is necessary, they believe in order to remove all preconditions as barriers to getting affordable coverage. Further, they feel that those who cannot afford the rates should get government subsidies in the form of tax credits.
Conservatives resent being forced to buy health insurance that they might not want or need. Conservatives resent having the government subsidize payments with tax credits that are based on reported taxable income.
I have a solution that both can live with and would actually improve the current system:
Eliminate the mandates for individuals while maintaining them for businesses of a certain size for employees who work a certain number of hours a week. Individuals not covered by an employer’s group plan or by a federal program like Medicare or Medicaid, should be free to decide whether they want to buy coverage. If they so decide, they should be able to avail themselves of the health exchange which would offer deals from several different insurance groups. The insurers will be free to ask about certain medical preconditions that are long term, expensive to treat and well documented such as cancer, heart disease, type 1 diabetes, AIDS, kidney failure, liver disease, pancreatitis, alzheimer’s, etc. Insurers cannot ask or consider any medical preconditions other than those agreed upon by the decision-makers. They cannot ask about how many drinks we have or whether we have ever had marijuana or broken a leg.
The various health insurance companies will then offer competitive rates for those without any of the identified serious health conditions and refer the rejected applicants to the federal system - Medicare. Medicare will then cover these applicants and charge a share of cost equivalent to the premiums charged the healthy private coverage recipients.
This way the insurers can cover everyone who wants coverage and be motivated to lower their rates to attract more healthy members mindful that individuals will not receive government subsidies which are really also subsidies for the insurers.
Therefore coverage will not be mandatory and there will be no government tax credits saving a lot of time, trouble and fraud. Tax credits are too tempting for many to resist. The Earned Income Credit has an estimated $11 billion in fraud each year. Those who elect to forgo coverage will them be responsible for the health costs should they occur.
Illegal immigration is another sore point.
Liberals feel that if people take the time and trouble to leave their homelands because of the corruption, poverty and resultant violence, and come to our country, we should accept them and help them on their path to citizenship. “Aren’t we all descended from immigrants?” they ask. “Doesn’t the Statue of Liberty say that we want all the poor and huddled masses to come to our shores?” They do not want people found to be here without authority to be deported because it would break up the affected family, including those not yet started.
Conservatives want the border completely secured so that no one can just walk in. They want those caught crossing, to be immediately repatriated without assignment of an attorney and a court date that will never be attended. Conservatives would like those found here to be deported regardless of their length or quality of stay. They are completely opposed to giving those here illegally permanent residency or citizenship.
I have a slight compromise:
First, completely secure the southern border and our visiting Visa system to stop the flow of illegal immigrants. Deport all those currently being held or any that still get through, almost immediately after apprehending them near the border. They should not be imprisoned or released to the community for a future court date. People seeking asylum should be invited to do so in their native country before leaving. We have embassies and consulates that could process these requests.
Our government should work with the Latin American countries from which these immigrants are coming. We should develop a new Marshal type plan to make these countries places where people want to live not leave.
We should allow those who have been here for several years and committed no serious crimes or violations to be granted temporary residence status allowing them to live and work without fear of deportation unless they commit serious crimes in the future. They will be able to work for the same wages and benefits as their coworkers receive. Those who have committed crimes here should be deported upon completion of their prison sentences. If they have family here, one would expect them all to move back as that is what families do.
The federal income tax code is a third major issue.
Conservatives want to pay lower marginal tax rates and want more people to pay taxes. The liberals want the rich to pay more in taxes and want to see fewer tax loopholes for the wealthy.
As I have already written in previous columns, I think we should eliminate all itemized deductions and credits for personal income and replace them with a standard deduction (self employed and corporate income would still have itemized deductions). The top marginal tax rate could then be lowered to 35% for income over $1 million as opposed to the current 39.5% for income over $400,000. And all income would be equally taxable, so dividends would be the same as interest and earned income and Social Security benefits. Income is income.
This would satisfy both sides, raise a lot more revenue and would be much easier to administer with a lot less chance of fraud.
How’s that for finding middle ground for three of our country’s most divisive issues? There is reason to hope.
The Affordable Care Act is probably the most contentious issue between the two parties and the electorate, which is split in its support.
Liberals feel that everyone must have health coverage and that business and government should subsidize it. They believe that having coverage must be mandated and backed by mandatory fines to ensure compliance. The mandate is necessary, they believe in order to remove all preconditions as barriers to getting affordable coverage. Further, they feel that those who cannot afford the rates should get government subsidies in the form of tax credits.
Conservatives resent being forced to buy health insurance that they might not want or need. Conservatives resent having the government subsidize payments with tax credits that are based on reported taxable income.
I have a solution that both can live with and would actually improve the current system:
Eliminate the mandates for individuals while maintaining them for businesses of a certain size for employees who work a certain number of hours a week. Individuals not covered by an employer’s group plan or by a federal program like Medicare or Medicaid, should be free to decide whether they want to buy coverage. If they so decide, they should be able to avail themselves of the health exchange which would offer deals from several different insurance groups. The insurers will be free to ask about certain medical preconditions that are long term, expensive to treat and well documented such as cancer, heart disease, type 1 diabetes, AIDS, kidney failure, liver disease, pancreatitis, alzheimer’s, etc. Insurers cannot ask or consider any medical preconditions other than those agreed upon by the decision-makers. They cannot ask about how many drinks we have or whether we have ever had marijuana or broken a leg.
The various health insurance companies will then offer competitive rates for those without any of the identified serious health conditions and refer the rejected applicants to the federal system - Medicare. Medicare will then cover these applicants and charge a share of cost equivalent to the premiums charged the healthy private coverage recipients.
This way the insurers can cover everyone who wants coverage and be motivated to lower their rates to attract more healthy members mindful that individuals will not receive government subsidies which are really also subsidies for the insurers.
Therefore coverage will not be mandatory and there will be no government tax credits saving a lot of time, trouble and fraud. Tax credits are too tempting for many to resist. The Earned Income Credit has an estimated $11 billion in fraud each year. Those who elect to forgo coverage will them be responsible for the health costs should they occur.
Illegal immigration is another sore point.
Liberals feel that if people take the time and trouble to leave their homelands because of the corruption, poverty and resultant violence, and come to our country, we should accept them and help them on their path to citizenship. “Aren’t we all descended from immigrants?” they ask. “Doesn’t the Statue of Liberty say that we want all the poor and huddled masses to come to our shores?” They do not want people found to be here without authority to be deported because it would break up the affected family, including those not yet started.
Conservatives want the border completely secured so that no one can just walk in. They want those caught crossing, to be immediately repatriated without assignment of an attorney and a court date that will never be attended. Conservatives would like those found here to be deported regardless of their length or quality of stay. They are completely opposed to giving those here illegally permanent residency or citizenship.
I have a slight compromise:
First, completely secure the southern border and our visiting Visa system to stop the flow of illegal immigrants. Deport all those currently being held or any that still get through, almost immediately after apprehending them near the border. They should not be imprisoned or released to the community for a future court date. People seeking asylum should be invited to do so in their native country before leaving. We have embassies and consulates that could process these requests.
Our government should work with the Latin American countries from which these immigrants are coming. We should develop a new Marshal type plan to make these countries places where people want to live not leave.
We should allow those who have been here for several years and committed no serious crimes or violations to be granted temporary residence status allowing them to live and work without fear of deportation unless they commit serious crimes in the future. They will be able to work for the same wages and benefits as their coworkers receive. Those who have committed crimes here should be deported upon completion of their prison sentences. If they have family here, one would expect them all to move back as that is what families do.
The federal income tax code is a third major issue.
Conservatives want to pay lower marginal tax rates and want more people to pay taxes. The liberals want the rich to pay more in taxes and want to see fewer tax loopholes for the wealthy.
As I have already written in previous columns, I think we should eliminate all itemized deductions and credits for personal income and replace them with a standard deduction (self employed and corporate income would still have itemized deductions). The top marginal tax rate could then be lowered to 35% for income over $1 million as opposed to the current 39.5% for income over $400,000. And all income would be equally taxable, so dividends would be the same as interest and earned income and Social Security benefits. Income is income.
This would satisfy both sides, raise a lot more revenue and would be much easier to administer with a lot less chance of fraud.
How’s that for finding middle ground for three of our country’s most divisive issues? There is reason to hope.
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