The Health Care Domino Effect
No matter your personal feelings on Obama’s health care “reform” initiative, do not be fooled by what is happening on the surface and in the short term. Mr. ToughMoneyLove is convinced of two things about what will happen in the longer term, depending on how long the Democrats retain their legislative power.
Why is this important in the personal finance realm? For one thing, the public insurance option will mark the beginning of the end of the private health insurance industry as we know it, with single payer killing it altogether. If you are an investor in any of these companies, think about the long term value of that investment.
The second major financial event that will accompany ObamaCare is a tax increase on the middle class. Forget what Obama the candidate said. There is too much deficit and not enough economic growth to fund government involvement in universal health care. The foundation for a middle class tax increase is already being prepared. Treasury Secretary Geithner and Economic Advisor Summers made the rounds of the Sunday talk shows this past weekend. When pressed, they acknowledged that a tax increase to fund health care was likely. They refused to rule out extending it down into the middle class.
The first domino is about to fall. Two very large dominoes will fall right behind it. Be ready and, depending on your attitude, be afraid.
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