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Wednesday, August 08, 2007

Speaking of laboratories of democracy...

Just as I'd like to see some state experiment with private ownership of infrastructure, I agree with John Stossel's column today on Wisconsin's plan to greatly expand government control of health care. While we think that Wisconsin is making a mistake that will harm business in the state, it is still worthwhile to have the experiment. Let's see if the dire predictions of critics such as Stossel and the Wall Street Journal take place.
In addition, as the Journal put it, "Wow, is 'free' health care expensive. The plan would cost an estimated $15.2 billion, or $3 billion more than the state currently collects in all income, sales and corporate income taxes."

And, of course, down the road it will cost much more than that. Even the $15 billion is based on the usual Pollyannaish assumptions such as millions in savings "from putting more emphasis on primary care."

As usual, most of the new taxes will be imposed on employers. Progressives believe money taken from them doesn't cost anything. Rich corporations will simply waste less on lavish perks and excess profits. But taxes on business are often paid by workers, stockholders and consumers. Businesses that can't pass the taxes on to someone else will close or move out of state.

But progressives are oblivious to this fact. They see Wisconsin becoming a fairyland of health happiness supervised by the 16-person "authority" that will oversee the plan. Socialism will work this time because the "right" people will be in charge.
Wisconsin thinks that they have designed a plan that will counter such objections. Let them experiment and the rest of us can analyze the results. And when former Governor Tommy Thompson eventually drops out of the presidential race, perhaps he can return to his own state and try to help his state understand that there is no such thing as a free lunch or free health care.

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