Tuesday, September 18, 2007

Hillary-The Solution is Simple

Wouldn't it be wonderful if instead of making things more complicated, they made things simpler? Instead of the new nightmare of legislation that Hillary is proposing, why not do what we already know works to increase the supply side of the medical world rather than trying to increase the demand side?

What am I talking about? It's simple. Increase the profit margins in medicine so that we have more doctors, more providers and more solutions to our problems. How can we do that? With the stroke of a pen. Eliminate all federal income taxes on those in the medical profession, the drug industry, and wellness industry. Then you can sit back and watch the results.

Under today's system, doctors, like everyone else, pay higher and higher taxes the more they earn. So on one hand we want their services, but we penalize them when they are too successful. Bad idea. Doctors, nurses and others who earn more and get to keep what they earn will work more, providing more opportunities to see more patients. Others will see the potential income in the industry and join it as well. It really is that simple.

Am I the only one to recognize that the more profit there is in something, the more of it becomes available to the masses? No. Drug dealers have known this for years. Prohibition proved this to the liquor makers.

Yet the approach Hillary and company have proposed fail in two areas: They increase the demand AND they reduce the profits of those who supply. Hasn't this approach been disastrous each time it has been tried? In the 1990's the Federal government told nursing homes what they would pay for patients despite what the actual cost was. Instead of improving the industry, it was devastated. The government tried to reduce profit, and they reduced any incentive to go for new patients. How many new patients would you like if you lost money on every one?

The Federal government reminds me of the I Love Lucy episode where Lucy and Ethel lose a nickel on every jar of salad dressing they make. Of course they tell Ricky they will make it up in volume....

If the goal is to improve health coverage in this country, let's have the federal government make the first sacrifice and forgo the income taxes generated from this proposal of mine. If they are not willing to sacrifice for the better of all, then why should you and I?


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