December 7, 2017 NYT
Paul Krugman
Let me ask you a question; take your time in answering it. Would you be willing to take health care away from a thousand children with the bad luck to have been born into low-income families so that you could give millions of extra dollars to just one wealthy heir?
You might think that this question is silly, hypothetical and has an obvious answer. But it’s not at all hypothetical, and the answer apparently isn’t obvious. For it’s a literal description of the choice Republicans in Congress seem to be making as you read this.
The Children’s Health Insurance Program, or CHIP, is basically a piece of Medicaid targeted on young Americans. It was introduced in 1997, with bipartisan support. Last year it covered 8.9 million kids. But its funding expired more than two months ago. Republicans keep saying they’ll restore the money, but they keep finding reasons not to do it; state governments, which administer the program, will soon have to start cutting children off.
What’s the problem? The other day Senator Orrin Hatch, asked about the program (which he helped create), once again insisted that it will be funded — but without saying when or how (and there don’t seem to be any signs of movement on the issue). And he further declared, “The reason CHIP’s having trouble is that we don’t have money anymore.” Then he voted for an immense tax cut.
And one piece of that immense tax cut is a big giveaway to inheritors of large estates. Under current law, a married couple’s estate pays no tax unless it’s worth more than $11 million, so that only a handful of estates — around 5,500, or less than 0.2 percent of the total number of deaths a year — owe any tax at all. The number of taxable estates is also, by the way, well under one one-thousandth of the number of children covered by CHIP.
But Republicans still consider this tax an unacceptable burden on the rich. The Senate bill would double the exemption to $22 million; the House bill would eliminate the estate tax entirely.
So now let’s talk dollars. CHIP covers a lot of children, but children’s health care is relatively cheap compared with care for older Americans. In fiscal 2016 the program cost only $15 billion, a tiny share of the federal budget. Meanwhile, under current law the estate tax is expected to bring in about $20 billion, more than enough to pay for CHIP.
Paul Krugman
Let me ask you a question; take your time in answering it. Would you be willing to take health care away from a thousand children with the bad luck to have been born into low-income families so that you could give millions of extra dollars to just one wealthy heir?
You might think that this question is silly, hypothetical and has an obvious answer. But it’s not at all hypothetical, and the answer apparently isn’t obvious. For it’s a literal description of the choice Republicans in Congress seem to be making as you read this.
The Children’s Health Insurance Program, or CHIP, is basically a piece of Medicaid targeted on young Americans. It was introduced in 1997, with bipartisan support. Last year it covered 8.9 million kids. But its funding expired more than two months ago. Republicans keep saying they’ll restore the money, but they keep finding reasons not to do it; state governments, which administer the program, will soon have to start cutting children off.
What’s the problem? The other day Senator Orrin Hatch, asked about the program (which he helped create), once again insisted that it will be funded — but without saying when or how (and there don’t seem to be any signs of movement on the issue). And he further declared, “The reason CHIP’s having trouble is that we don’t have money anymore.” Then he voted for an immense tax cut.
And one piece of that immense tax cut is a big giveaway to inheritors of large estates. Under current law, a married couple’s estate pays no tax unless it’s worth more than $11 million, so that only a handful of estates — around 5,500, or less than 0.2 percent of the total number of deaths a year — owe any tax at all. The number of taxable estates is also, by the way, well under one one-thousandth of the number of children covered by CHIP.
But Republicans still consider this tax an unacceptable burden on the rich. The Senate bill would double the exemption to $22 million; the House bill would eliminate the estate tax entirely.
So now let’s talk dollars. CHIP covers a lot of children, but children’s health care is relatively cheap compared with care for older Americans. In fiscal 2016 the program cost only $15 billion, a tiny share of the federal budget. Meanwhile, under current law the estate tax is expected to bring in about $20 billion, more than enough to pay for CHIP.
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