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Comprehensive solution including health care

March 14, 2017

In our federal government, we are back in the debate over Health Care. The debate over Healthcare goes way beyond health care. It has hit the heart of the underemployed, unemployed, and minimum wage employees. These groups are each in an income strata that does not allow enough income to pay for the necessities of life.

Beginning with the bottom of the barrel, there are people who have virtually no income. They can be elderly or unemployed or employed in the cash economy. In any case, they show no income for federal taxes and they do not qualify for earned income tax credit.

The next group of people may work full-time jobs, may even work two full-time jobs. The problem is their pay is 7 or $8 an hour, and if they work 2,000 hours a year, they do not have enough income to match the cost of living where they live.  (see simple math below)

So the great bureaucracy has created institutions to make up the shortfall in the underpayment these people receive for their work. The money is fed back through Earned Income Tax Credit which pays back more money than was deposited in their tax collections and can be as much as a $2 an hour boost.

The food stamp program and housing programs can easily add another 2 to $3 an hour to their pay. Of course the government has many people to manage these programs, get cash from some people and run it all through the bureaucracy. How about the low income people being allowed to earn $5 an hour more in the jobs they are holding.

As we move further up the income ladder, there are people with income based on 10-12, $14 an hour. These incomes frequently still do not match the cost for them to live a very modest life.

So moving from the income side to the expense side we look at Health Care and it is not affordable for any of these people. We could create an organization that “feeds money back” to millions of people with the incomes defined above, such as an Earned Income Tax Credit, as an earned medical payment credit. EMPC

This still does not solve the problem as medical costs would still rise faster than the government could fund the EMPC by borrowing the money from China! A better solution is to create hospitals that have little a no bureaucracy. They receive an annual budget that can be adjusted based on the number of people they serve. Anyone of any economic level can choose to be treated at these facilities and can choose to go to doctors who are part of this program. With some oversight only the names and possible Social Security numbers of the patients would be turned into verify that the people were treated. There would be no billing for particular procedures.

So the Federal government is back in the debate over healthcare. The debate over healthcare goes way beyond healthcare. It hits at the heart of the under employed and unemployed and minimum wage employees. The solution needs to be comprehensive to include less priority for defense spending and tax reform. An approach that does not threat these issues as “simultaneous equations” has no validity.

 

Simple math

You work 40 hours per week at $8 per hour equals about $1400per month, pay bills– rent $900 per month,  utilities  $200 per month, transportation $100 per month bus fare, taxes and “with holdings”taken from your $1400 equals $220.    math 900+200+100+220= 1440, you owe money and do not get to eat (unless the government puts up the shortfall), watch Tv, do anything health related. plus so many other expenses most people have.

 

 

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