A report on the New York Post website yesterday reports the IRS may hire as many as 16,000 new agents.This is estimated to add another $1 billion dollars to the federal budget. This is alleged by Republicans on The House Ways and Means committee. Under the Obama plan the IRS would be given new powers of enforcement. The IRS will be given the charge to see every American has “acceptable” health insurance. If your plan is not acceptable the IRS may be able to withhold your income tax return and or levy fines due to your non compliance. Everyone under the Obama plan will be required to purchase insurance. If you can’t pay for the insurance the subsidy to purchase will come through the IRS in the form of a tax credit. Under one version of the plan the money will come from a Health Choices Administration. Do we really want the IRS involved in assessing our health care and possibly releasing our tax information to other agencies?
Both options create legions of new federal employees. The Federal Government has created lots of jobs during this recession and I have written about why that kills private sector jobs . Federal jobs pay wages and benefits higher than the private sector and are paid for by tax payers. In earlier articles I have already written about the drag of government employment on the private economy.
This is a concern in our own state. The State of Wisconsin is now the largest employer Taxes are currently so high in this State that we have created a negative climate for business. Large Government means high taxes taking money away from small business to create jobs. We have major employers such as GE Medical that will be adversely affected by the current Obama plan.
I wrote earlier in the year that the Obama plan for health care would cost 5.2 million jobs nation wide.
A representative from Caterpillar said this week on the Rush Limbaugh show that the current bill will cost them $100 million dollars. This will be multiplied many times over as provisions of the bill are put into place.
The real key is creating good paying jobs. Cure unemployment and you largely cure the problem of the uninsured. Many uninsured are also unemployed . The President needs to stop creating legislations that will kill jobs. Focus on lowering taxes and reducing regulations and jobs will be created. These jobs will also provide the health coverage needed.