Common Sense vs. the CBO on ObamaCare

Both the House and Senate versions of the healthcare reform bill would require employers above a certain size to provide health insurance for their workers or face some sort of penalty. The House bill that passed last month would require employers to pay an 8% additional payroll tax for not insuring their workers. The Senate bill now under consideration is much less punitive, requiring employers who do not provide insurance to pay a $750 annual fee per full-time worker, but only if one or more of their employees receive a government subsidy in the insurance exchange.

Quite a difference between the two bills. By way of example, take an employee earning $50,000 per year. Under the House bill, an employer who did not provide insurance would be required to pay an additional tax of $4,000 to the federal government. Compared to only $750 under the Senate bill – a difference of more than 500%.

Now consider whether it would make more sense financially for the employer to provide insurance or pay the penalty. In our example above, under the House bill it would probably be close to a break-even if the employer is providing coverage only for the employee. According to the most recent data from the Bureau of Labor Statistics (BLS), the average monthly insurance premium for private industry employers across all worker categories was $317.63. Or just over $3800 annualized (compared to the $4,000 penalty). However, it would be quite a bit more expensive if the employer was providing family coverage (BLS data: $737.68/mo – $8850/yr).

Obviously under the Senate bill it would be far less expensive for the employer to just pay the $750 penalty rather than provide the insurance.

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Tags: Bureau of Labor Statistics, Congressional Budget Office, employer provided health care, employer-based coverage, federal health subsidy
Posted Dec 2nd 2009 at 10:37 am in Healthcare | 3978626 Commentshttp://biggovernment.com/mrichmond/2009/12/02/common-sense-vs-the-cbo-on-obamacare/Common+Sense+vs.+the+CBO+on+ObamaCare2009-12-02+17%3A37%3A06Morgen++Richmond

The Future of Wade Rathke and ACORN, Part I

People that know him, and know him well, have described him as an “organic genius” and a “diabolical genius”. He’s become a lightning rod and a polarizing figure, and he’s at the center of a national debate. Wade Rathke is the former long time CEO, or Chief Organizer, of ACORN, the Association for Community Organizations for Reform Now. He’s now running Community Organizations International, the former ACORN International. When I emailed Wade Rathke  Friday October 23rd, I was surprised that he agreed to an interview. I was even more surprised that he was familiar with my work. Yet, he was willing to give me some time on the afternoon of the 26th of October. What follows are some of my thoughts following an interview that lasted about an hour.

The campaign that COI is most involved in, or at least featured on their main page, is the campaign to reform global remittance. Global remittance is the process by which ex patriates send money back to family in their home country. For instance, it’s been well documented that Mexico’s main economic source is actually money sent back home from the USA. According to Rathke, this is an industry that topped $300 billion, and far too many of its players practice predatory lending practices. For instance, Rathke has seen fees up to 20% of the amount to be wired. So, if someone were to send $1000 back home, they would be charged $200 to process this transaction. Rathke stressed that such fees were an “outlier” but fees of 5% are about the norm. In his view, this is far too much, and the poor are being taken advantage of by predatory lending practices in this area. Furthermore, with these rates, it also leads to a black market. That’s what’s happening. Often people send money home with all sorts of strangers because they’re promised that it will get there with no charge.

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Tags: ACORN, ACORN Canada, ACORN Dominican Republic, ACORN India, ACORN International
Posted Nov 12th 2009 at 2:17 pm in ACORN, Culture, News, Politics | 2953832 Commentshttp://biggovernment.com/mvolpe/2009/11/12/the-future-of-wade-rathke-and-acorn-part-i/The+Future+of+Wade+Rathke+and+ACORN%2C+Part+I+2009-11-12+21%3A17%3A09Michael+Volpe

ACORN and SEIU: Anatomy of a Shakedown

Across America community organizations operate in impoverished, disadvantaged, low-income or minority communities. No matter the phrase used to describe the special interest, a group exists to represent it. Often these organizations initially have good intentions and seek to give back and serve the community in which they operate. When government money, power and influence become part of the equation however, lofty principles tend to fall by the wayside. Other organizations are created to cause chaos and disrupt the system.

The Association for Community Organizations for Reform Now (ACORN) was perceived by many as a well-intended organization, but it appears that the association that Wade Rathke founded was increasingly driven to cause chaos and disrupt the system whenever it could.

BEFORE the Dale Rathke embezzlement finally became last year, John Fund, in “Grapes of Rathke: ACORN, a liberal activist group, comes under scrutiny. About time,” reported: (more…)

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Tags: ACORN, Booz Allen, Carlyle Group, Community Reinvestment Act, Dale Rathke
Posted Sep 27th 2009 at 5:30 am in ACORN, Big Labor, Featured Story, Obama, Politics | 930271 Commentshttp://biggovernment.com/amoncrief/2009/09/27/acorn-and-seiu-anatomy-of-a-shakedown/ACORN+and+SEIU%3A+Anatomy+of+a+Shakedown2009-09-27+12%3A30%3A58Anita+MonCrief

Buffy The Integrity Slayer

Right, so let’s say you’re Buffy Wicks.  You’ve were the director of the Obama campaign in Missouri, probably doing some “organizing”, you were there during those raucous Texas caucuses, and you were Obama’s California Field Director.  You love you some Barack Obama, and you’re great at what you do, which is rabble rousing, “organizing”.  Now you call it “engaging”.  You were great at this when you went after Walmart for the UFCW Union as political director of the WakeUpWalmart campaign.  Anyway, people noticed, and now that your candidate won, there’s a spot for you in the White House!  In fact, when you visit one of your immediate bosses, whether it’s Christina Tchen or Valerie Jarrett, you probably have to pass the Vice-President and Rahm Emanuel’s office before you reach the stairs to the second floor.  Oops, careful Buffy, because if you walk much past those stairs you could walk right into the Oval Office….you are definitely in the White House!

Anyway, once you get upstairs it’s literally a few short steps to Valerie Jarret’s office.  She’s been crazy busy integrating Van Jones into the new ruling class, so you might pass her office and it’s only one more door to go.  Now you’re at the corner suite of Christina Tschen, Chicago lawyer, long-time Obama crony friend and major fundraiser for his campaign.  She must have raised a lot of dough, because her office is pretty sweet, and it’s right above Barack Obama’s Oval Office.  Cool, huh? (more…)

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Tags: ACORN, Buffy Wicks, nea, Obama, Valerie Jarrett
Posted Sep 23rd 2009 at 9:31 am in Culture, News, Politics | 6998No Commentshttp://biggovernment.com/jude/2009/09/23/buffy-the-integrity-slayer/Buffy+The+Integrity+Slayer2009-09-23+16%3A31%3A14Jude