Moving Susquehanna Valley Forward

Defend…not Defund: Urge Congress to Fix The Affordable Care Act – Not Dismantle It

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What will happen if Congress repeals the Affordable Care Act? Millions of Pennsylvanians will lose their health care coverage. Millions more, including those on employer-based plans, will lose benefits and improved coverage.

According to a recent poll released by Kaiser Foundation, 75% of Americans DO NOT want Congress to repeal the Affordable Care Act at all–or until we have a better proposal. Not surprising…over 20 million Americans have benefited from the ACA.

Yet the Republicans, who have voted to repeal the ACA over 60 times in the last four years are determined to dismantle the landmark legislation that gave hope to so many who longed for access to affordable healthcare.

The ACA has had tremendous impact here in Pennsylvania. Most of us know someone who has benefited. Nearly 500,000 Pennsylvanians gained comprehensive coverage that doesn’t discriminate or require higher premiums based on sex, age or pre-existing conditions.

The ACA has also improved health care services for the 2.9 million Pennsylvanians covered through Medicaid and the Children’s Health Insurance Program (CHIP); and has allowed the state to expand these programs to an additional 261,000 people.

Over 5 million Pennsylvanians suffer from pre-existing conditions. Before the ACA, it was impossible or prohibitively expensive for individuals with prior conditions to acquire healthcare. Now, health care companies cannot deny coverage or charge more based on diabetes, cancer, pregnancy, depression, or any other physical or mental health issue.

An estimated 90,000 young Pennsylvania residents have benefited from the ACA provision that allows them to stay on their parent’s insurance until the age of 26.

Before the ACA, over 4.5 million Pennsylvanians had healthcare coverage (acquired through their employer or as an individual) that was subject to annual or lifetime limits. These caps, often hidden in fine print, would cut off coverage after reaching a maximum payout amount in a given year or over the life of the policy. As a result, people were losing their healthcare while undergoing cancer treatments or hospital stays after a catastrophic accident. Then, because pre-existing conditions precluded them entirely or made coverage financially unfeasible, severely ill individuals would find it impossible to acquire additional coverage.

It’s true premiums have continued to rise but at a slower rate than what was occurring prior to the ACA. This is remarkable considering that the ACA:
• ended annual and lifetime limits;
• provides free preventative care;
• allows young adults to stay on their parent’s plan;
• improved mental health coverage;
• ended discrimination based on pre-existing conditions; and
• required more comprehensive care, including emergency room services.

The ACA limits how much insurance companies can spend on overhead; therefore, they re-invest more money in paying healthcare claims that benefit their customers.

Think about it: before the ACA, health care premiums were rising exponentially despite the fact that so many had limited coverage or were excluded altogether. These higher premiums did not result in better healthcare services, just higher profits for the corporations.

The ACA strengthened coverage for many who were already insured but it’s not perfect; there were those who did not fair as well. Some people could no longer stay on their preferred plan (because it didn’t quality per the minimum ACA requirements) some who lost superb healthcare because the ACA penalized employers for providing what’s called “Cadillac” policies.

Republicans should look at opportunities to improve and extend the Affordable Care Act; they should not dismantle it, leaving tens of millions adrift without coverage. If Republican legislators want change, then they need to propose a better plan for the American people.

Even the American Medical Association, the largest association of physicians in the US, warned Congress this week to not rush to repeal but instead provide a detailed plan for ACA’s replacement and let Americans decide whether it is a step in the right direction.

Join us on January 15 in front of Congressman Lou Barletta’s Sunbury office at noon to stand up for affordable health care. If you can’t come out, call Congressman Barletta (570.988.7801) and tell him to maintain and improve the ACA.

We cannot go back to denied coverage, lifetime limits and health insurance driven solely by profit motives.

The ACA must not be repealed. Too many Pennsylvanians have too much to lose.

Fair Taxation & Representation

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There is a lie persistently propagated by politicians and businessmen suggesting the rich are unfairly taxed in this country. The truth is that the rest of us are unfairly taxed to make up for what the “well-to-do” do not pay.

Recently, we learned that Donald Trump likely used a nearly $1 billion business loss in 1995 to get out of paying federal taxes for 18 years. Mr. Trump notes that he is simply using existing regulations and laws to his greatest benefit and fulfilling his fiduciary responsibility to his company. It is true…he, along with countless businessmen, did nothing illegal, or even unethical, by taking these breaks.

Politicians, however, are purposefully misleading the American people when they continue to claim that the U.S. tax code is somehow unfair to the wealthy and corporations. They constantly site the official tax rate as the basis to reduce taxes; yet it is the effective tax rate (what is actually paid) that must be considered.

The United States has a regressive tax structure. A complicated system of federal deductions, loopholes, off shore tax shelters and government incentives that result in considerable tax breaks for the rich and leave a significant portion of the tax burden to the working class.

And it is not just individuals. According to the Government Accountability Office, 20% of large U.S. corporations pay no taxes. In 2015, 25 large corporations (listed on Standards & Poor’s 500) reported paying no income tax despite declaring a profit.

Big business contends that these incentives and breaks are fair considering the amount of investment corporations make in job creation. Yet, corporations receive tax deductions when they invest in automation, which clearly reduces the work force. Even more egregious is how corporations may claim deductions when outsourcing and moving operations overseas.

There is no evidence to suggest that these deductions have resulted in more jobs or higher wages. In fact, as corporate profits have increased over the decades, wages have remained stagnate or decreased and high-paying manufacturing jobs have continued to move overseas.

According to Americans for Fairness, the amount corporations contribute to our federal tax revenue has dropped 60% in the past 60 years. This while corporate profits have increased exponentially in the same time period. In recent years, corporate profits reached their highest percentage of the total economy since the government began recording such data in 1929.

So, yes, American corporations, and those who get wealthy off these corporations, are doing very well. Yet they are contributing minimally (if at all) to the federal government that provides necessary programs and services to ensure a functional society. That leaves the rest of us to pay for the military, veterans’ programs, regulatory agencies, road and infrastructure projects, etc. These services often benefit industry as much or more as individuals.

Many argue that while corporations may pay limited or zero federal taxes they do contribute at the state and local levels.

Here in Pennsylvania, corporations are expected to pay the Corporate Net Income tax and capital franchise tax, the latter of which is being phased out as of 2016.

As for the former, large corporations often take advantage of the “Delaware loophole”. The loophole allows subsidiaries of national companies to deduct from their state taxes the royalty payments that they pay to parent companies. Subsequently, these companies pay little or no business tax to the state.

Pennsylvania’s small businesses cannot take advantage of this loophole and therefore often shoulder a larger portion of the state’s tax burden.

In addition, Pennsylvania offers corporate subsidies, state and local tax abatements and special incentives intended to lure large companies to the state. These programs offer minimal oversight, no tangible obligations and zero guarantees that jobs will be created.

Is it fair for billionaires and prosperous corporations to pay zero dollars in taxes? Is it fair for workers and small businesses to bear the financial burden to maintain our society? I say enough is enough. Let’s demand fairness and honesty.

We must strive for a fair tax system that does not overburden the working class. This requires that politicians stop perpetuating the myth that the wealthy are overburdened so that we can have an honest discussion and seek real solutions.