Fiscal Cliff

Recent Reports suggest that soon, a Family of Four will be paying $ 25.000,00 for Health Insurance annually and that, with less Coverage and higher Deductibles.

While the Affordable Care Act (so called Obamacare) is a Step in the Right Direction, it is, some suggest, not nearly enough to bring under Control Medical Costs.

Various Statistics reveal the following:

§ Medical Costs in the United States are the highest in the World.  The Second Runner Up is at less than half.

§ Doctors in the United States earn the highest Incomes of any Doctors anywhere, so much so that Doctors from less affluent Countries who have a Medical Education in English (it is considerably more difficult to pass the Boards with a non English Medical Education) are clamoring to get a Foothold in the United States and practice, yes, practice Medicine, of course.

§ Despite all this, Life Expectancy in the United States is just about Neck in Neck with Life Expectancy in, of all Places, some place like Cuba.  There are a Multitude of Reasons for this, of course, including Dietary Factors but, still, one would expect more, given the Costs of Health Insurance and Health Care.

§ A Common Medical Procedure, known as an MRI costs, on Average, according to some Statistics, $ 2.500,00 in the United States.  It can be performed at some Outpatient Clinics for as low as $ 600,00 and one Reporter recently found a Hospital in Boston which charges in Excess of $ 7.000,00 for this exact same Procedure.  Health Insurance Companies have Contracts under which they pay less (why should people who pay for Medical Care out of their own Pocket have to pay more is a Question which deserves being raised and be examined on its own Merits).  The more interesting Thing, though, is that the same exact Procedure, an MRI costs approximately $ 160,00 in Germany, France and Italy.  In Japan, a Country not exactly known for low Costs, it costs $ 60,00.  They all use the same exact Equipment, manufactured by either Siemens or GE and, at least two of the four Countries above, Germany and Japan, are not exactly known for low Wages.

What is going to be compromised between Mr. Obama and Mr. Boehner with regard to the ,,Fiscal Cliff,'' whatever that means, is yet to be revealed and it is probably not known by either of them at this Moment.

However, one Item which has come up is the new Medicare Taxes which will be going into Effect 1 January 2013, as a Result of Legislation passed by Congress and signed by Mr. Obama.  This Legislation provides, no, it does not provide for new Taxes, it establishes the Provision that Medicare Taxes should continue on Wages in Excess of $200.000,00 (for Single Taxpayers) and $ 250.000,00 (for Married Taxpayers).

http://nbcpolitics.nbcnews.com/_news/2012/12/11/15846903-democrats-seek-delay-in-one-obamacare-tax-increase?lite

Suddenly, this Provision has now come under Scrutiny and may be sacrificed as part of the Negotiations to avoid the so called ,,Fiscal Cliff.''  We do not understand this Point.

The Congress and the President of the United States can decide what the Obligations (including the financial Obligations) of the Federal Government will be on a Year to Year Basis.  Some of these Obligations are inescapable, they are either dictated by Law or by Contracts (such as Debt Interest, for Example).  How are Wage Earners who make more than $ 200.000,00 or $ 250.000,00 ,,hurting'' the Economy by paying 1,45% of their Wages for Medicare Tax on Income above that Amount?

Paranthetically, another Tax which is equally regressive is the Social Security Tax, currently at 4,2% for Employees, but only on the First $110.000,00 of their Wages.  Translated, that means, of course, that People who get huge Salaries, sometimes $ 500.000,00, sometimes $ 5.000.000,00 or even more, simply pay that $ 4.000,00 or so in Social Security Tax and then are 4,2% ahead for every Dollar they earn from $110.000,00 forward.

One Thing is apparent.  With this Kind of Manœvering, if it comes into Play, very little is going to get accomplished.  And the Can will be kicked forward.

Dancing Elephants - Continued - The New York Times

Jeffrey R. Immelt? Ain't this the Fellow at GE with the Dancing Elephants who was chosen by The President to head the Council of Economic Advisers?

Now, Boys, shouldn't he also be given a Hefty Raise or be paid a Huge Bonus by GE? And, given the Expertise of John Samuels, who formerly worked for The Treasury and now works for GE, it should not be too difficult, if at all, to claim either Payment as an Expense Deduction for GE. No Social Security Withholding Taxes need to be paid to The Treasury for this, either, since the additional Compensation would be over the Threshhold. What the Heck! Give'm both the Raise and the Bonus! There would be no Adverse Impact on GE's Earnings if you do this, Boys; the Money will come from the U. S. Treasury! Oh, lest we forget; no Social Security Withholding Taxes to be taken from Mr. Immelt's Compensation for his 'Services' to the Government as an 'Economic Adviser.'

The earlier Reference to 'Dancing Elephants' in this Forum appears to be corroborated by the Article which appeared on 24 March 2011, in The New York Times (Link below). The New York Times also makes Reference to GE's Slogan in the 'Dancing Elephants' Ad: 'Imagination at Work!' NO KIDDING!!!

http://www.nytimes.com/2011/03/25/business/economy/25tax.html?_r=1&nl=todaysheadlines&emc=tha2

Dancing Elephants

Jeffrey R. Immelt is the Chairman of GE. He succeeded the legendary Jack Welch, who opened new, unprecedented Visions for GE; to this Day, Mr. Welch remains a deeply respected Figure both inside and outside of the Business Community. Just recently, Mr. Immelt was also selected by The White House to head The Economy Advisory Panel, previously headed by Paul A. Volcker, a towering Figure who had steered the Fed during very, very troublesome Waters more than a Quarter of a Century ago. Earlier, Mr. Volcker, a crusty, No Nonsense Individual, had been fired by President Reagan because, among other Reasons, he had not been an avid enough 'Deregulator' and we all know what 'avid Deregulation' has brought the Economy to.

Mr. Immelt's Company, on the other hand, is fast becoming known as the Company which is bringing to us Entertainment in the Form of TV Ads featuring Dancing Animated Elephants, People dressed in funny Costumes who, instead of working, are dancing and singing on GE Factory Floors and, just now, a 500 Million Dollar GE Capital Loan to Borders Book Stores, which has just filed for Chapter 11.

One could well wonder, what Ideas Mr. Immelt is going to be suggesting to President Obama but Things like Dancing Animated Elephants are not likely to be of much use.