GraniteGrok

It just keeps going on in a rampage of self-fulfilling prophecies - cries that health insurance is too expensive.  Well, of COURSE it is when States decided to fix their coffers on the back of the sick.  NY has been spending lots lately - and why not?  Much of their state income has been from targeting the rich from the financial sector.  Like all states leaders that lose their sense of grounding when surrounded by lots of dollars they didn't earn, NY spent widely over the last few boom years.

And now, when the boom has gone bust, the state finds it hemmed in with costs it can no longer afford.  So, what does it do - of COURSE - raise taxes!

When you hear all of the talk about the "present system" being too expensive and in need of government intervention, remember this little goodie:

The biggest hits will be to insurance companies, which will be asked to come up with about $855 million in extra assessments. Those amount to more taxes on health insurance plans, increased sales tax on hospital discharges and more shifting of general fund costs to the Insurance Department so that insurance companies pay for programs such as Timothy's Law, the mandated coverage of mental health treatments.

Further, the governor also will propose a new tax on some physician services to raise $50 million.

The bottom line will be a net increase in costs that ultimately get paid by subscribers, thereby increasing the cost of coverage at a time that most upstate insurers are struggling.

Perhaps a New Yorker or two will save this information and trot it out the next time we hear claims that it is the greedy insurance companies which are driving health care costs through the roof. What Gov. Patterson is proposing isn't new or unusual - it is what happens when government intrusion becomes widespread and is considered, by the entity with the monopoly on force, to be of a higher priority to fund than those private citizens might hold.

At the same time, Gov. Patterson is going to spend more on welfare programs - 30% more.  So, the situation is that "I don't have enough money as it is - so I'm going to tax, and then spend some more".  Great economic theory, right?

And yes, NY is one of the states that has its hand out to be bailed out.....nice.

McQ has the best summary:

That sort of nonsense will continue as long as the state can arbitrarily spend on whatever it chooses. That and being left to decide what it considers to be the proper role of taxation is (in this case, "social change" vs. simply funding necessary government) and that virtually anything, for any reason, is taxable.

At what point will politicians realize that as they raise costs, they ARE pushing those citizens on the edge of being "wards of the state" over that edge.

Oh, sorry - what was I thinking?? More dependents mean more money!!

(H/T: Right Wing News)