How Government Pays for Things | Government 101 Series

Image courtesy: Joshuapundit.blogspot.com

Image courtesy: Joshuapundit.blogspot.com

You can’t go anywhere and not here people talking about Obamacare and health insurance right now. Many are finding themselves shocked at the dramatic rise in the cost of insurance now that portions of the Affordable Care Act have taken effect. Insurance costs will make continue their dramatic rise when the rest of the plan is fully implemented after the 2014 elections.

So let’s take a look at how government pays for things. Since government produces nothing, it sustains itself two ways; the first is by taxing and levying fees. We’re all familiar with sales and property tax as well as FICA and Social Security (SSI) but there are taxes on all sorts of things ranging from alcohol and tobacco, goods being shipped in and out of the country, and gasoline has three taxes imbedded in the cost – in fact, the majority of the cost of a gallon of gasoline go to the government not the oil companies as the Democrats would have you believe.

Government learned that it can camouflage a tax by charging you a fee for something. Think about all the fees you pay for drivers licenses, vehicle registration, hunting license, fishing license, pet license – you get the idea. You don’t think it really costs $75.00 per year to send you a sticker to put on your license plate or windshield do you?

The other way government makes ends meet is to borrow money. Borrowing at all levels of government is at record levels and the federal government is now on the hook for $17-trillion. Dear Leader Obama has amassed more debt in his presidency than all the other presidents before him combined and the Affordable Care Act will add even more to the exploding national debt.

So why are health-insurance costs rising so dramatically? Simply put, when you try to insure an estimated 30-million people who previously did not have insurance, someone has to pay for it. That someone is the people who are already insured because they now have to pay their fair share for someone else’s insurance.

Conveniently President Obama delayed many of the most costly parts of the Un-Affordable Care Act to take effect until after the mid-term elections in the hope of not hurting the Democrats too badly with legislation that he knew would be a major burden on the American people. Time will tell if this political chicanery worked but judging by the dismal polling numbers and the total ineptitude of the people running the website, 2014 is shaping up to be a disaster for the left but that’s another topic.

For instance, the city I live recently saw its insurance cost rise by 25-percent and they are projecting at least that much for the year.

It is obvious now that President Obama has told the most costly lie in American history; “that the average American would see their health insurance costs reduced by $2,500 per year.” What remains to be seen is what the American People will do in response to the great lie.

About Todd

Todd Kinsey is a political consultant and conservative commentator whose articles have appeared in many leading publications, both print and electronic. His work has been cited by prominent media outlets such as the Wall Street Journal, the Washington Times, the Washington Post and U.S. Daily Review. You can contact him by email: todd@toddkinsey.com
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