For Immediate Release                                      Contact: Leslie K. Paige 202-467-5334 
July 24, 2009

CCAGW to U.S. House of Reps:  Vote “No” on H.R. 3200

(Washington, D.C.) - The Council for Citizens Against Government Waste (CCAGW) today sent a letter to all members of the House of Representatives urging a “no” vote of H.R. 3200.  The letter reads, in part:

“H.R. 3200 provides for the creation, expansion and extension of 33 entitlement programs and the implementation of 53 offices, bureaus, commissions, and programs on top of the entitlement expenditures.  The Congressional Budget Office estimates that this explosion of government will cost Americans $1.3 trillion, and increase the deficit by $239 billion over the next 10 years.

“The legislation is riddled with new tax hikes that will fall hard on Americans who are already struggling.  The bill calls for an individual healthcare mandate, imposing a 2.5 percent tax on individuals who do not obtain coverage through their employer or an approved government-run exchange.  That means Americans who cannot afford to purchase health insurance will shoulder the burden of another tax.

“A new tax of up to 8 percent of a firm’s total payroll will be imposed if an employer fails to provide health coverage.  Many employers will be forced out of business while many others will have to cut employee salaries in order to stay afloat.  According to Council of Economic Advisors Chair Christina Romer, 4.7 million Americans could lose their jobs as a result of these new taxes.

“A new surtax on “high earning filers” will increase tax rates up to 45 percent.  President Obama has consistently said that this group of Americans can “afford” to pay this amount.  However, more than half of these “high earning filers” are small business owners who employ others and they will inevitably be forced to cut back if faced with such a burdensome tax.

“President Obama has repeatedly promised that Americans can keep their current health insurance if they so choose.  However, the non-partisan Lewin Group estimates that 114 million Americans will lose their current coverage under this bill.  Section 102 of the legislation “grandfathers” private health insurance, so following a short period of time after enactment of the bill Americans will be forced to turn to the government-regulated Health Insurance Exchange for coverage.  That system will place a huge bureaucracy between patients and doctors, limit patient choice and ration care. 

“There are many problems with the nation’s current healthcare system that can be rectified through medical liability reform, pooling health insurance, offering tax incentives, allowing states to customize programs, and reforming insurance regulations.  Creating a government-run plan will not solve America’s healthcare problems, it will only exacerbate them.  All votes on H.R. 3200 will be among those considered in CCAGW’s 2009 Congressional Ratings.”

CCAGW is the lobbying arm of Citizens Against Government Waste, the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

                                                                   -###-