Monday, July 30, 2007

Rudy Wants to Give You a Tax Credit to Hire a Nanny

Presidential hopeful Rudy Giuliani called Democrats efforts to cover more people "Nanny" government. Expanding Children's Health Insurance happens to be one of those initiatives. I wonder how the child above feels knowing some her friends have to take the President's advice and go to an ER for healthcare?

Rudy went on to say he'd like to lower the capital gains tax rate to somewhere around 8%. That echoes Carlye Group and ex-IRS Charles Rossotti's testimony to Congress several years ago. Private equity underwriters (PEU's) already get two breaks on income, one for the firm and the other for senior managers' personal taxes.

As for Democrats being "Nanny's", Sen. Chuck Schumer of New York sounds distinctly Republican in his defense of PEU tax breaks.

Rudy wants to give families a tax credit to shop for health insurance, much like the President's plan. This enables employers to jettison that pesky employee benefit once and for all. This will feul the next round of profit growth wanted by Wall Street.

Mayor Giuliani would have you believe insurers will compete for your business. How long will it take for plan prices to rise to that magic $15,000? Then watch year after year as insurance companies cut benefits/coverage, but keep the premium the same. That's been the case for employers and unions. What makes you think an individual purchaser has more leverage than a large group? That would be the same delusion that has folks thinking George Bush is a good President...