The Cossacks Are Leaving The Wharf…For Now!

PROLOG: This article is an update of the saga “The Cossacks Are At The Wharf” which first appeared in an August 2007 Newsletter. You might like to read that article before proceeding; however, highlights of that article are summarized here. If you don’t have access to that past issue, go to www.TheWharf.com, click on Newsletters at the left side of the homepage to select the applicable newsletter.

The State-Children’s Health Insurance Program (SCHIP) was inaugurated in 1995 during President Clinton’s administration. This plan was scheduled to expire 19 September 2007. It was a back-door attempt by Hillary Clinton to implement a modified version of socialized medicine by providing health insurance to children of low-income families. The plan was individually administered by each of the 50 states with funds to the states coming directly from the US General Fund. The states were given a degree of latitude on qualifying guidelines. Several states pushed the envelope to the extent that families without children and above the income level were subsidized by this plan. Overall, the original plan is good as children should not be denied health care because their parents can’t afford to purchase health insurance from a private company. As well, funding is from the general fund so all Americans contribute. However, new legislation proposed this year would greatly extend the guidelines and place the entire cost, $50 Billion, square on the back of smokers. The cost of smoking would become prohibitive, businesses would close, smoking products would be purchased from the black market, and the funds to finance SCHIP would dry-up. Eventually, SCHIP funding would come from the general fund anyway. But, what will the true cost be to smokers and related businesses?

Those members of Congress in favor of SCHIP have been labeled as liberals and were predominately members of the Democratic Party. However, many Republicans have jumped ship to support SCHIP as they are scared of losing their elected position. They are being labeled as being against children and health care by those who seek their elected position. Bottom line, they are anti-smoking and want the smokers of this nation to belly-up and foot the cost of the entire SCHIP. Since this group is a diverse mix of political entities, I propose a new name for this segment of our society: Anti-Smoking Society (ASS).

As promised, President Bush vetoed the revised SCHIP bill passed by the US Congress in mid-September. In mid-October, Congress attempted to override President Bush’s veto. However, they failed to raise the 2/3rds vote necessary to override. Bush was willing to compromise on the amount of tax revenue expansion, from $35 Billion down to $5 Billion. All that expenditure would be paid for by increasing taxes on smoking products - but, ASS wants it all and vowed to reintroduce an altered bill that turned out to be so similar to the original that they gave up on a second rewrite. Between the second and third iterations, Bush announced, a first - that he would veto any SCHIP legislation that put the financial responsibility on smokers - that if the nation wanted socialized medicine, then the cost should be across the entire segment of the American population, not just be borne by smokers. At this point, ASS thinking is that it is useless to finish legislation for an expanded SCHIP program as the votes aren’t there to override. That attempt to enact SCHIP legislation, which would severely and prohibitively raise federal taxes on all tobacco products, is as dead as the butt of an old stinky cigar – for now. The ASS tactic is to extend the original 1995 legislation, which Bush said he would sign, and wait for a change in regime.

And a regime change could happen! For now, the Tsar’s Cossacks have left The Wharf without extracting any tribute, but have vowed to return. It is rumored that the current Tsar is in a weaken position, his influence is diminishing, and others are vying for his position. One who is very interested in acquiring that position is the wife of former Tsar Willy, himself an ASS advocate, who even now is proclaiming that the title of Tsarina should be hers: Tsarina Hillary, ASS Personified. If she can pull off that coup, I have no doubt that she will dust off the SCHIP bill which included prohibitive tobacco inventory taxes and have it enacted in lickety-split time. That bill will lay waste to The Wharf as well as all tobacco stores in the US.

The important thing to glean from all this maneuvering is that ASS is determined to introduce socialized medicine to the American public. It is no secret that our medical service is in disrepair and needs to be revamped. However, can we depend on the US government to correct these inequities? I think not. History has proven that whenever government meddles in private affairs that the government work force and taxes increase disproportionately to the service rendered.

We cannot begin to solve the health-care problem by pointing fingers at any one segment of the health care enterprise and proclaim that segment at fault. Government should get out of the health care business by enacting legislation to create an independent, non-profit authority to include all heath care entities. This authority would be free of any political control and be financially self-sufficient. Medi-Care funding paid by employees and employers would be directed from the general fund into the Authority as well as contributions by all entities. Sounds impossible? Since 1926, The New York Port Authority has been operating in this manner. It is possible, but many sacred-cows would have to be slaughtered. And that’s not a bad idea!