Increasing Taxes Resulting in More Tax Increases a Good Thing?

The MJS is supporting $800,000,000 in tax increases. 

This is true despite a cost to hospitals of about $400 million over two years, says Steve Brenton, president of the association.

That additional revenue would free up state dollars to apply to the deficit and, even more important, would allow the state to leverage more than $400 million in additional federal money over that same two-year period to pay for treating Medicaid patients.

Do they really think that those federal dollars come out of thin air?  That’s money that Wisconsinites pay too.  So, according to the MJS editorial board, having Wisconsinites pay $400 million more in taxes is a good thing because they will get about $400 million in federal dollars - part of which Wisconsinites pay too.  How will Wisconsin taxpayers benefit from this massive tax increase?

1. Something I don’t get.  The left is on this big kick about how expensive health insurance is for the average, middle class family.  Just how on Earth will this help them?

   This cost increase WILL raise the cost of insurance for the middle class.  There is no question about that.  This 400 million WILL be paid by insurers, who WILL pass the cost on to us.  The only people this will help is those who already don’t pay the up front cost.

   The most disappointing thing about all of this, and I have yet to hear anyone talk about this… is that we actually have a system setup that will give us more federal money if we raise taxes on hospitals.  Someone care to take a crack at explaining that one?

   Posted by on February 24, 2008 at 2150 hrs




2. Dan,

   It is the nature of the Medicaid system. If the stata puts money into the hospitals, the Feds will match that money - or in Wisconsin’s case we get more than a match because of our low household income. We get about $1.35 of our federal tax dollars for each $1.00 the state provides.

   The administration is trying to trim this back in the 2009 budget and this old smoke-and-mirror / parlor trick that states have been playing may no longer even be possible beginning January 1, 2009.

   And, yes - this tax falls on those who are privately insured.

   Posted by on February 24, 2008 at 2223 hrs




3. How will Wisconsin taxpayers benefit from this massive tax increase?

   They won’t.  But Doyle and the Legislature will be able to continue overspending their means.

   Posted by dad29 on February 25, 2008 at 0733 hrs




4. "We can not, we shall not, we must not raise taxes” - Jim Doyle

   Posted by on February 25, 2008 at 1402 hrs




5. After looking at the Journal’s quarterly reports it would be best if they called themselves sick and a hospital so they could get some of the Federal cash.

   Posted by on February 25, 2008 at 2048 hrs