I would like to support Arkansas Governor Hutchinson, but . . .
And another point made earlier by the Arkansas Project |
His proposed $100 million tax cut had my early support, until I discovered it wasn’t actually going to be a $100 million tax cut. And I worked hard to find encouraging initiatives in his “healthcare reform” proposal. In fact, his proposed “healthcare reform task force” had some initial appeal, until I discovered who is to be appointed to that task force.
On Thursday, January 22, Governor Hutchinson announced that he is asking the Arkansas Legislature to fund the “private option” through December 31, 2016, and to create a health reform task force.
A healthcare reform task force could have been a good idea, but continuing to grow the private option through 2016 is a horrific proposal. Coupled with the expected membership of the proposed “task force,” it will, as others have asserted, “keep Obamacare’s Medicaid expansion forever.”
The Governor seemed to justify his call for funding the private option for two more years by stressing that Arkansas’ “hospitals and healthcare providers can’t afford to face a cliff every year waiting to see if the private option will be renewed” by the Arkansas Legislature. However funding the private option for two more years wasn’t necessary to avoid the Governor’s “cliff.”
FREEZE IT; DON’T GROW IT
The Governor’s plan would have been more credible if it had called for a freeze on enrollment in the private option through 2016. An enrollment freeze would have avoided the dreaded “cliff” for Arkansas healthcare providers. But two more years of full funding will only (and one would have to suspect intentionally) further entrench, ensconce and bloat this unsustainable, inefficient government health insurance boondoggle for Arkansas taxpayers. A freeze on enrollment would have provided a perfect climate in which an unbiased task force could have functioned.
The Arkansas Legislature has the ability to replace two additional years of funding with a freeze on enrollment (or some similar alternative) in the private option. I’m going to work with you over the next few days to do all I can to encourage them to do so.
A TASK FORCE COULD HAVE WORKED
The Governor also called for the creation of a healthcare reform task force charged with finding “an alternative health care model” and “options to modify the entire Medicaid program.” This task force is to complete its work by the end of 2016.
I could have supported such a task force (if coupled with a freeze on private option enrollment) until I saw the proposed membership of this task force. According to Senate Bill 96, “The Arkansas Health Reform Act” sponsored by Senator Jim Hendren, (the Governor’s nephew), this task force will actually be “the Arkansas Health Reform Legislative Task Force,” the members of which are to be:
- The President Pro Tempore of the Senate (who is pro-private option)
- Five members appointed by the President Pro Tempore of the Senate
- The Senate Majority Leader (the Governor’s nephew who is sponsoring this legislation)
- The Senate Minority Leader (who is pro-private option)
- The Speaker of the House of Representatives (who is pro-private option)
- Five members appointed by the Speaker of the House
- The House Majority Leader (who is pro-private option)
- The House Minority Leader (who is pro-private option)
But I could not have a more fundamental disagreement with the Governor on healthcare than with what he described as the “fundamental question: Do the benefits outweigh the costs?”
With all due respect, whether or not the benefits outweigh the costs is BIG government’s fundamental question. The real fundamental question is, “Is this the proper role of government?” And the answer for the private option is a resounding “No!”
THERE’S TIME IF WE ACT NOW
There’s still time to fix this. The Arkansas Legislature has the power and authority to stop this unsustainable expansion of Medicaid. But we must act quickly and persuasively. Each of us must immediately contact our specific Representatives and Senators, especially those who promised us they would not support a continuation, much less a further expansion of the private option.
WHEN IS $100 MILLION NOT?
While I did not believe it was the best plan, I supported the Governor’s proposed $100 million tax cut for Arkansas’ “middle class.” But based on what the Arkansas Senate approved last week, that’s not what we’re getting.
Immediately following the Governor’s healthcare reform proposal, the Arkansas Senate approved a proposal that reduces income taxes by 1 percent for people making between $21,000 and $75,000 a year. But at the same time, the Senators voted to repeal a $21 million capital gains tax cut approved two years ago. Using my “non-common core” math, that makes the net tax cut about $79 million.
There are few more anti-business, anti-new jobs tax changes the Senate could have adopted to destroy Arkansas’ business climate faster than repealing a cut in Arkansas’ capital gains tax rates. Arkansas is already a new-business, start-up capital wasteland compared to our neighboring states, many of which have a zero tax rate on capital gains. I was shocked at the Senate’s anti-job growth, anti-business action! If this deliberative body had taken any pro-growth action, it would have been to completely repeal Arkansas’ capital gains tax.
There are continuing discussions to delay other tax cuts the Legislature adopted two years ago. Delayed tax cuts are – you guessed it – higher taxes. It will be interesting, or perhaps disgusting, to see how much of this proposed $100 million tax cut actually happens.
PUSHING HARD
It is clear that the Governor and his allies are pushing hard to get his proposals on the private option and tax cuts through the Legislature as quickly as possible. One could be excused for wondering if this fast-paced strategy is designed to preclude and prevent broad understanding and opposition.
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Curtis Coleman is a conservative republican voice in Arkansas, founder of ArOne.TV, and the Curtis Coleman Institute for Constitutional Policy. He is a contributing author of the ARRA News Service
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1 Comments:
I think the number currently enrolled is 127,000, Bill... Already well over the max number of participants budgeted for... And a huge percentage of those enrolled claim $0 income... Tells me there are way to many able bodied individuals on the teat in this equation...
Arkansas had better get out of this thing, and quickly...
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