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Former CBO Director Douglas Holtz-Eakin on the Buffett Rule and how the health-care law will impact Americans’ access to care.
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-- shocking report out on the state of the UK's nationalize health care system.
Now at times of London announces shows Britain's hospitals discharge.
Thousands of patients in the new -- not every week.
In an attempt to free up beds experts have warned about bureaucratic rationing health care -- -- proof.
What should it tell us though about obamacare the impending government takeover of America's health care system joining us now Douglas told me.
-- action form and a former CBO director.
-- does it sounds really looming dooming -- we need beds -- people out in the middle of the night you actually thing that's gonna happen here in the United States.
There's a real risk of not a bad problem but of a real shortage of key treatments that the reality is that.
We have in the obamacare law -- -- the independent payment advisory board.
Its job will be to identify ways to save money in Medicare it can only do it over short periods like -- so there's no long range planning involved.
What's going to -- -- cut reimbursements and it'll cut the reimbursements for the newest most expensive but.
Most are promising therapies and what we'll see -- and that looks like.
Not enough beds -- our cases will be not enough medical innovation not enough access to care and less quality in the outcome.
-- this is like these so called death panels to that are out there right they're gonna put up this advisory board to cut and to your point we're talking about new technological advances in therapies and drugs and things like that in -- saying that's the first ago.
That we're increasingly seeing that.
The US spends a lot more medical care but we're getting value for some of that spending as well compared to Europe.
We see people have serious ailments such cancers and the like.
Survive longer -- higher quality lives and they do it because.
We have access to care be don't have access and I'm not have enough beds and we get high quoting medical science and we won't get that at the start cutting off payments.
But we have doctors that are cutting back on services and taking patients in its -- of what.
Is coming down the -- with Medicare is -- it.
Well it's what's coming down the -- in terms of cutting their reimbursements we've seen this movie many times.
We put in place in late ninety's a law that said we're not gonna pay the -- and Medicare too much.
When they start doing that they're gonna at the reimbursements cut by 23 and 25% this -- saying hey we're not gonna see Medicare beneficiaries.
That's the most basic form of rationing you may have Medicare but you can't see a doctor so.
We need to get this price fixing out of the system we need to get the notion that a bureaucratic board to make these decisions out of the system.
And we need to get into health care the same kinds of things that have been successful in the other 80% of the US economy.
You know -- called this the greatest -- in horse in modern memory as a result then I mean we're basically saying repeal repeal it and start over.
This is a disastrous bill it's disastrous on the medical science it's disastrous for the quality of care.
It we can't afford -- this is two trillion dollars of new spending at a time when.
You and I both know we don't we don't have that kind of money -- -- lead to greater federal -- a greater likelihood of a financial crisis.
And with 500 billion dollars in new taxes in two billion trillion dollars in new spending this is anti growth and we need to grow we need to get people into jobs.
That'll get them insurance and we'll give them access to care.
What's interesting is that you know with all these tax is we start hearing about this -- -- really nice in addition here for you.
So this notion of fair share taxing the rich.
I don't know how does this going to spur growth.
There's nothing about the Buffett tax that's going to cause growth.
There's nothing about the Buffett tax is gonna solve the deficit problem it's less than 110 of one penny for every dollar deficit we have this year.
And there's nothing about -- this going to fix our -- going to be another layer of bureaucracy.
On top over regular tax and Alternative Minimum Tax.
So you have to wonder if it doesn't solve any of those problems what is it really therefore and I think the answer has to politics.
You know that's -- minimum tax -- both -- created.
To tax the rich right -- that the rich paid is small amount of tax and now of course it's it's now mistrust on the middle class.
Gen re it's about as the -- acts of 1970 analogy everyone.
Faces -- who makes far less than -- millionaire that's for sure but in millionaires in the world can afford tax help and essentially not pay this Buffett tax at the end of the day so.
The minimal amount of revenue they expect to bring in will probably sliced in half.
It it brings in trivial amounts of money and it's basically a full employment rule four for tax lawyers so.
But it doesn't have a place in a serious discussion -- actual I think that's obvious.
-- I think that's consensus among the tax professionals.
It is time to go force comprehensive permanent pro growth tax reform.
Take out the subsidies that really aren't legitimate that do allow someone -- bring their taxes down below what they should pay but also.
-- -- racer to line everyone else let's get all that stuff out of this and get the rates down that's what the Bowles Simpson commission the president's own fiscal commission recommended.
And we need something like that to make the economy perform better.
How do you do that though without really abolishing the entire thing because somebody out there's gonna have -- lobbyists and the money to pay for this deductions at their constituents need.
Why -- continue to keep them on on but the reality.
As its business it's really hard and we had -- we've had a an income tax for nearly a hundred years -- and have the anniversary.
And we've had less than a handful of serious comprehensive reforms that tells you how hard it is but.
The stakes are too high right now.
For us to let that get in the way it is time for everybody to understand.
That the common good is served by having a better tax code it is something in the United States is over due to get in place.
It's near and dear to me because I have done taxes.
In the past in my brother -- is like it is a -- of -- -- the internal revenue -- -- become a book of favors any -- -- winners and losers so maybe you know waited for everyone to pay their fair share.
-- -- -- The book.
I I endorse that -- we need a much better tax code.
And we certainly have to restore americans' faith in the tax code -- this book the favors undercuts what used to -- America's got to which has been voluntarily paid taxes for government they -- -- we're losing that that's a big danger.
But yet that is how people get votes isn't it -- get political favors through the tax -- There's no question about that but I believe.
That and just as the old campaign logic of war always spend more and -- -- people by -- that ways it gets changed in 2010.
I think we're -- -- where politics when because it has to change because we have to grow.
Because we have to get the spending under control the politics are gonna look different in the future than they have in the past and tax -- of the placed at the start.
So repeal obamacare and -- the tax code if only that it were that easy -- It's it's easy on a blackboard is easy and -- discussion it's hard to get it through congress that was -- -- thank you for being with us sir thank you.
