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Posted 10/29/09 09:50 AM Red in Blue State Watsontown, PA | I've been thinking about this whole opt out exercise and I can see one fundamental flaw with it. In the states that opt out of the program, citizens taxes will not be reduced one cent. It is similar to me paying for private school for my children, I still pay taxes for the (terrible) public schools which raises the spending per student only because the number of students is decreased.
This is a net gain for the taxing authority, in this case the Fed, because they will now have people paying into the system that are not using resources of the system. This will make the program appear to be running quite well and with little or no defecits depending on how many are withdrawing resources from the system. If anything I can see the Fed wanting just over 50% of states opting out but still paying in. Is this a valid observation? |
Posted 10/29/09 6:58 PM sweetliberty San Rafael, CA | Go, Kansas!
Red, I would assume that the state in question would opt out of the benefits AND the taxation. At least I would hope so. |
Posted 10/29/09 9:35 PM ScottXS Hoffman Estates, IL | Taxation without representation? Hmmmm....
I wonder if Kansas could assess the property occupied by the IRS? What if state police began issuing onerous fines for trivial traffic violation? This is how civil war begins. "Beggar-your-neighbor". Independent, prosperous states (Texas, et.) opt-out. Dependent, old and socialist states demand taxing the prosperous ones, which naturally resist. |
Posted 10/30/09 12:40 AM Bohemian Reno, NV | I'm fearful that state nullification will not be enough. Unless you have a company that produces and sells exclusively within such a state, prices will still be raised and choice still limited to what the Fed dictates. Nullification would need to happen by at least half of the states, with all of the wealthy ones being on that side as well. I find this unlikely. |
| Posted 10/30/09 09:09 AM Red in Blue State Watsontown, PA | Bohemian, that is exactly what makes this even more complicated. Right now this product, health insurance, is completely confined within state boundries. Each state is the sole arbitor of what insurance is sold within its borders.
The next decade, or less, are going to be a period where the union and statehood is once again questioned IMHO. Nullification isn't only on the plate in Kansas. I know that Arizona was considering similar legislation and I think a few other states were as well. Federal Debt, unfunded mandates, climate legislation, tax hikes, all of this is creating an explosive environment. |
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