Wednesday, March 16, 2011

Raising Taxes to Save Money

"Government is the problem, not the solution."

At present, this is true.  The reason is that Conservative Republicans are actively undermining government initiatives, then crowing about how inefficient it is.

Allow me to present an example.  A Democrat proposes the building of a highway, and estimates cost to be $1 million.  It is proposed that taxes should be 'raised' to increase revenue, by 2%, to fund the project.  Republicans claim that this increase will slow economic growth, so they only agree to a 1% increase, resulting is less revenue in which to fund the project.  The result is the highway is paved only partially, then Conservatives say, "Look how inefficient government is, they can't even properly pave a road!"

I'd like to argue that we should go the other way.  What if government could provide better or ideal services, and still save taxpayers money, all by raising taxes?

Skeptical?  Allow me to explain...

Government should take over the entire insurance sector.  Instead of paying bloated premiums to for-profit private insurance agencies that are legally allowed to discriminate, you pay 'part' of that money as higher taxes.  Without the need to turn a profit, advertise, or pay high salaried executives and board members, government could offer you more delivered claims for lower prices.

Insurance companies don't produce anything.  They simply collect, hold, and distribute money, while keeping some for itself.  That sounds like exactly what government was designed to do.  Insurance companies are legally allowed to discriminate to set premiums, then legally allowed to deny claims, and lobby for broader ability to do so.  Why?

Why not allow government non-profit agencies to do a better job, while costing less?

Raising taxes could save money while offering better services.  The savings of which, would further stimulate economy growth, all by offering full coverage government.

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