Free Markets, Free People

Freedom and Liberty

Honduras – “The Triumph Of The Rule Of Law”

Octavio Sanchez, writing in the Christian Science Monitor, takes exception to the charges that what happened with the removal of President Manuel Zelaya. was a military coup.

Instead, he says, it was a “triumph of the rule of law.” And he gives the world a little lesson in the Honduran Constitution.

In 1982, my country adopted a new Constitution that enabled our orderly return to democracy after years of military rule. After more than a dozen previous constitutions, the current Constitution, at 27 years old, has endured the longest.

It has endured because it responds and adapts to changing political conditions: Of its original 379 articles, seven have been completely or partially repealed, 18 have been interpreted, and 121 have been reformed.

It also includes seven articles that cannot be repealed or amended because they address issues that are critical for us. Those unchangeable articles include the form of government; the extent of our borders; the number of years of the presidential term; two prohibitions – one with respect to reelection of presidents, the other concerning eligibility for the presidency; and one article that penalizes the abrogation of the Constitution.

Sanchez makes the point that Honduras has gone through same sort of “trial and error” process with its constitution as has the US, France and other nations. But he then focuses on the 7 articles that cannot be repealed or amended. They form the crux of the case against Zelaya.

These are the facts: On June 26, President Zelaya issued a decree ordering all government employees to take part in the “Public Opinion Poll to convene a National Constitutional Assembly.” In doing so, Zelaya triggered a constitutional provision that automatically removed him from office.

Constitutional assemblies are convened to write new constitutions. When Zelaya published that decree to initiate an “opinion poll” about the possibility of convening a national assembly, he contravened the unchangeable articles of the Constitution that deal with the prohibition of reelecting a president and of extending his term. His actions showed intent.

Our Constitution takes such intent seriously. According to Article 239: “No citizen who has already served as head of the Executive Branch can be President or Vice-President. Whoever violates this law or proposes its reform [emphasis added], as well as those that support such violation directly or indirectly, will immediately cease in their functions and will be unable to hold any public office for a period of 10 years.”

Notice that the article speaks about intent and that it also says “immediately” – as in “instant,” as in “no trial required,” as in “no impeachment needed.”

Supreme Court Justice Rosalinda Cruz defended the ouster of Zeyala as well:

The arrest order she cited, approved unanimously by the court’s 15 justices, was released this afternoon along with documents pertaining to a secret investigation that went on for weeks under the high court’s supervision.

Others have also defended Zeyala’s removal:

David Matamoros, a member of Honduras’ Supreme Electoral Tribunal, also defended the military’s action.

He said Zelaya originally called the vote a plebiscite, then, when that was barred, shifted to describing it as a poll, creating uncertainty as to its legal standing and his intent. No government agency was willing to conduct the vote, he said. All the ballots and equipment for the illegal poll were flown in on a Venezuelan plane, he said. The court ordered the materials confiscated.

Nothing has been said about the apparent meddling by Venezuela.  Nor has there been any investigation by those so interested in immediately condemning the action taken by the authorities in Honduras as a “military coup” into the constitutional claims of the interim government.  Given Sanchez’s description of the evidence and the constitutional provisions, it appears he may be right – this was indeed a triumph of the law.

So why was Zelaya flown out of the country instead of being arrested?

The Supreme Court and the attorney general ordered Zelaya’s arrest for disobeying several court orders compelling him to obey the Constitution. He was detained and taken to Costa Rica. Why? Congress needed time to convene and remove him from office. With him inside the country that would have been impossible. This decision was taken by the 123 (of the 128) members of Congress present that day.

15 justices of the Supreme Court, 123 of 128 Congress members, the Attorney General, the Supreme Electoral Tribunal and the military all acted in concert and apparently within the law and the constitution, to remove someone who had violated the constitution and essentially impeached himself.

Says Sanchez:

Don’t believe the coup myth. The Honduran military acted entirely within the bounds of the Constitution. The military gained nothing but the respect of the nation by its actions.

I am extremely proud of my compatriots. Finally, we have decided to stand up and become a country of laws, not men. From now on, here in Honduras, no one will be above the law.

Given that explanation and assuming it is the case, it seems we should be celebrating what Honduras has done instead of condemning it.

~McQ

Government Run Health Care – “Anecdotal” or Indicators of a Systemic Problem?

A couple of quick examples of real world problems with government run health care. South Africa:

KwaZulu-Natal health MEC Dr Sibongiseni Dhlomo has issued an ultimatum to striking doctors, calling on them to return to work on Friday or face the music.

Addressing the media in Durban on Friday, Dhlomo said notices had been sent to all hospitals calling on all striking doctors, dentists and pharmacists to resume their duties no later than 08:00.

The department was also preparing a court interdict to force the striking health professionals to end the strike, he said.

“We as the department of health are designated as an essential service provider and therefore find the action of these health professionals [is] disrupting service delivery and compromising patients’ lives,” said Dhlomo.

He said the department had been more than reasonable in dealing with the unprotected strike.

“This situation is untenable, we cannot continue to put the lives of our people in danger and the government will act,” he said.

Dhlomo said people had died due to the unavailability of doctors, although he was unable give the number of people who died as a result of the strike.

A recent example you’re probably more familiar with from Canada:

A critically ill premature baby is moved to a U.S hospital to get the treatment she couldn’t get in the system we’re told we should emulate. Cost-effective care? In Canada, as elsewhere, you get what you pay for.

Ava Isabella Stinson was born last Thursday at St. Joseph’s hospital in Hamilton, Ontario. Weighing only two pounds, she was born 13 weeks premature and needed some very special care. Unfortunately, there were no open neonatal intensive care beds for her at St. Joseph’s — or anywhere else in the entire province of Ontario, it seems.

Canada’s perfectly planned and cost-effective system had no room at the inn for Ava, who of necessity had to be sent across the border to a Buffalo, N.Y., hospital to suffer under our chaotic and costly system. She had no time to be put on a Canadian waiting list. She got the care she needed at an American hospital under a system President Obama has labeled “unsustainable.”

And this one:

In 2007, a Canadian woman gave birth to extremely rare identical quadruplets — Autumn, Brooke, Calissa and Dahlia Jepps. They were born in the United States to Canadian parents because there was again no space available at any Canadian neonatal care unit. All they had was a wing and a prayer.

The Jepps, a nurse and a respiratory technician flew from Calgary, a city of a million people, 325 miles to Benefit Hospital in Great Falls, Mont., a city of 56,000.

Great Falls was better equipped to handle their case than was Calgary? People like to dismiss these as “anecdotal”, but they continue to describe a system in which decisions have been made that end up endangering the lives of children. It is inevitable when the primary focus of “reform” is “lowering cost”.

Doctor’s strikes. Limited if not completely unavailable neo-natal care. The refusal of the system, based on cost concerns only, to provide certain care that places the lives of those on the margin in jeopardy.

Is that what we have to look forward too?

~McQ

[HT: Micaela S]

CBO, Entitlments, Health Care Reform and the Deficit

One more time into the breach. The CBO has issued a warning to Congress about entitlement spending. Again. Here’s a key paragraph:

Almost all of the projected growth in federal spending other than interest payments on the debt comes from growth in spending on the three largest entitlement programs–Medicare, Medicaid, and Social Security.

Most of you know that Medicare and Medicaid have an unfunded future liability of 36 trillion dollars. That’s about 3 times the annual total GDP of the US economy. And they are the very same type of “public option” program – i.e. government insurance – that the left says is so very necessary and crucial to real “health care reform”.

In other words, the left’s argument is that adding at least 47 million (presently uninsured), plus the possibility of adding 119 million who are shifted to the public option from private insurance (private insurance, btw, doesn’t have any effect on the deficit whatsoever since we, the private sector, are paying for it) will somehow make the deficit picture better?

I’m obviously missing something here.

With the public option, we’re adding a new entitlement (47 million who presently supposedly can’t afford insurance, meaning taxpayers will subsidize theirs). Assuming it is set up originally to be paid for by premiums, at some point, like Medicare and Medicaid, and every other government entitlement program I can think of, it will pay out more than it takes in. How can it not? It is a stated “non-profit” program and it will include subsidies. At some point, another revenue stream is going to be necessary as it burns through the premiums with its payouts.

Well, say the proponents of government involvement in your health care, we’re going to save money by doing preventive health care. Yes, preventive care is the key to lower costs because a healthier population is one which visits the doctor less. While that may seem to be at least partially true (you’d think a healthier population would, logically, visit the doctor less) the part that is apparently missed when touting this popular panacea is the cost of making the population healthier (and the fact that the assumption of less visits isn’t necessarily true) doesn’t cost less – it costs more:

If health care providers can prevent or delay conditions like heart disease and diabetes, the logic goes, the nation won’t have to pay for so many expensive hospital procedures.

The problem, as lawmakers are discovering to their frustration, is that the logic is wrong. Preventive care — at least the sort delivered by doctors — doesn’t save money, experts say. It costs money.

That’s old news to the analysts at the Congressional Budget Office, who have told senators on the Health, Education, Labor and Pensions Committee that it cannot score most preventive-care proposals as saving money.

So with that myth blown to hell, we’re now looking at a government plan which will add cost to the deficit by subsidizing the insurance of 47 million and (most likely) many more, plus a plan to use a more costly form of medicine as its primary means of giving care.

But, back to the entitlement report – or warning. The CBO says that unless entitlements are drastically reformed (that means Medicare, Medicaid and to a lesser extent, Social Security) we’re in deep deficit doodoo:

The most frightening findings in this report are the deficit and debt projections. In this year and next year, the yearly budget shortfall, or deficit, will be the largest post-war deficits on record–exceeding 11 percent of the economy or gross domestic product (GDP)–and by 2080 it will reach 17.8 percent of GDP.

The national debt, which is the sum of all past deficits, will escalate even faster. Since 1962, debt has averaged 36 percent of GDP, but it will reach 60 percent, nearly double the average, by next year and will exceed 100 percent of the economy by 2042. Put another way, in about 30 years, for every $1 each American citizen and business earns or produces, the government will be an equivalent $1 in debt. By 2083, debt figures will surpass an astounding 306 percent of GDP.

The report also finds high overall growth in the government as a share of the economy and of taxpayers’ wallets that provides an additional area of concern. While total government spending has hovered around 20 percent of the economy since the 1960s, it has jumped by a quarter to 25 percent in 2009 alone and will exceed 32 percent by 2083. Taxes, which have averaged at 18.3 percent of GDP, will reach unprecedented levels of 26 percent by 2083. Never in American history have spending and tax levels been that high.

Here’s the important point to be made – these projections do not include cap-and-trade or health care reform.

Got that? We’re looking at the “highest spending and tax levels” in our history without either of those huge tax and spend programs now being considered included in the numbers above. Total government spending, as a percent of GDP is now at an unprecedented 25%. And they’re trying to add more while this president, who is right in the middle of it, tells us we can’t keep this deficit spending up forever.

Fair warning.

~McQ

More first hand coverage from Honduras

My colleague in Honduras, who sent me the material I posted yesterday, is back with more today. He’s also fine with using his real name. So please welcome Hector Figueroa for this guest post at QandO, with photos and news from yesterday’s march. (You may click on the thumbnail photos below for full-size versions.)

***************************

Hi Billy,

Aside from have heavy-normal work day here, I managed to be at this march for support to our new authorities. This march went on at larger cities around the country. Unlike the previous government, which ordered its employees to stop working and go march, these were the lucky that managed to leave work and be there.

I’ll grant CNN that they do have these aerials on their site.

Mine, of course, were a bit to be more terrestrial. And to me, it went as far as the I could see. Sorry for the size, this way you have both big and small.

HondurasMarch1Reduced

Por esto luchamos unidos. Mel y Chavez fuera!
For this we fight (the book is our Democratic/Republican/Representative Constitution). Mel and Chavez, get out!

HondurasMarch2Reduced

HondurasMarch3Reduced

Rich & Poor, Young & Old, Workers & Execs, Civilians & Military, Teachers & Students. WE ARE ALL UNITED!!!

HondurasMarch4Reduced

Every street was packed.

HondurasMarch5Reduced

Our newly appointed President and our hero, Armed Forces Commander.

{I did an extract from this photo showing more detail of the new president, Roberto Micheletti.}

HondurasMarchNewPresident

*********************************

Thanks to Hector for furnishing us with this first-hand account. I continue to hope for a resolution to this political crisis that reflects the wishes and needs of the Honduran people.

I would be suspicious of any political figure backed by the UN, Hugo Chavez, and Obama, when the people of his nation are mustering the sort of opposition shown above. It pains me to see Chavez threatening the use of force, especially since he probably perceives that neither we nor the UN will do anything about it if he does.

The UN has passed a resolution insisting that Zelaya be returned to office. Given the kind of opposition shown above, I think that was a short-sighted action. I consider the Obama administration’s position to be short-sighted as well, but given their record to date, it’s not surprising.

My own opinion, guided by my preference to believe my colleague on the scene (and other analysts and witnesses) over political and media hacks, is that removal of Zelaya was justified. I hope the Obama state department and various functionaries at the UN look more closely at Honduran law and re-evaluate their position. I’d particularly like to see a firm warning to Chavez to butt out.

US Troops Withdraw From Iraqi Cities

Voluntarily as a part of the agreement signed last year by the Bush administration.

Wow.

I think this is the first time I’ve mentioned Iraq at all for months. That in itself is quite amazing.

In 2006 most people were waiting for the Iraqi version of the last helicopter leaving the US embassy in Saigon.  Now, we’re turning over the vast majority of the security work in Iraq to the Iraqis as the people of Iraq celebrate the handover.

Trust me – no one is anymore pleased to be heading out of the cities than US troops.  And for the opponents of the war, it’s pretty hard to deny the success that has been built on the surge and the change in strategy implemented by the Bush administration.

In fact, Obama really hasn’t had to do a thing except accept the plan that administration left in place and execute it.

But …

There’s always a “but”. But that doesn’t at all means everything is smooth sailing and unicorns and rainbows are now in Iraq’s future. Instead it means that for the most part, the Iraqi state is functional and at least minimally able to take care of its own security. It also will probably mean, in the absence of US military might, that some of the old players will again try their hand at fomenting violence in a bid to reestablish their agendas for Iraq.

This still remains a red letter day for Iraq, however. And it also is a red letter day for the region. The question is will they continue to make progress or will we see sectarianism and the violence that usually accompanies it reemerges as US troops withdraw.

There are going to be horrific acts of violence in Iraq for a while. That is just the nature of the beast as the last of the dead-enders do their thing. What we have to hope for is the progress to this date continues, Iraqis think of themselves as Iraqis first (and whatever religious sect or ethnic group second) and work toward a stable and democratic Iraq.

Everyone I’ve talked too who’ve been there since the surge, to include Michael Yon, are very encouraged by what they’ve seen and experienced.

Best of luck to the Iraqi people – it is pretty much now theirs to make or break. We’ll soon see how badly they want what they have.

~McQ

This situation in Honduras – a first hand report

I have a professional colleague in Honduras who wrote many of us a message yesterday, pleading for help getting the word out about the true situation as he sees it. I don’t know if it’s prudent to give his name at this point.

I requested permission to repost that message here, and he readily agreed. So this is written by a Honduran, directly addressing the rest of world and appealing for us to understand the situation there and take action appropriately:

I seek your advice. I have to find the best way to make all governments, especially the world leaders, understand what is happening in Honduras. I’m gathering IT friends and developers to brainstorm on this and hopefully save our country from terror.

This alias is not political [He refers to the mailing list on which he posted this message] so I won’t write in those terms. But can say that the great majority of my country celebrated the forced departure of our Ex President. He and Hugo Chavez did the best they could to divide this nation, making us fight against each other, but in the end, they made us more united and more aware of what Democracy really is, and embrace it. They’ve done us a favor actually.

Just so you know what happened in one line: Our Ex President was trying to repeat what Hugo Chavez has achieved in four other countries by controlling the national media, bribing top officials and threatening citizens. He wanted to illegally change our constitution so that he could create a one and only Party, do away with national media, change the way referendums are carried and be reelected indefinitely by these false referendums.

If you ask why we voted for him as President in the first place? Well, he presented himself as a normal candidate in opposition to corruption. We basically voted (me included) for him, because we were against the other guy. Little did we know that he would start insulting the USA (country where most of us have family and friends) and befriending all its enemies. He took a hard, hard left. With Hugo Chavez’s money, he bought three TV channels and a News Paper that is delivered “free of charge” to every citizen’s door step. You get 24X7 news on how “Pinky and the Brain” plan to take over the world. His own Party ousted him a few months after being elected President.

You need to know that all of the Churches (all the brands), the Teachers Union, Commerce Chambers, Worker Unions, The Congress, the Supreme Court, the Police, the Armed Forces, everyone has celebrated his ousting. Every single person I know (that did not work directly for him) (rich or poor) is very happy with the actions taken and the new temporary President that we have until November’s elections.

To sum it up we all just had it with this guy and are happy he’s gone. Unfortunately, what I see on the world news is astonishing to us. All Presidents back him up and want him reinstated. Hugo Chavez has troops from Venezuela lined up on our Nicaraguan border. Are we going into war for something that we all wanted as country to stop? Hugo Chavez knows that he has to act soon before the media and world start to see what really happened here. So we have to get the message out as fast as possible.

When I requested permission to repost, this was his response:

Dear Billy,

I’m sorry it took this long to get back to you. We’ve been having outages of Internet ever since the 7.1 earthquake that hit a couple of weeks ago. There are many reasons why it was so urgent for us to get rid of this man. He disregarded the whole country for the sake of Hugo Chavez’s interest. Bridges fell down, schools and houses broke down, etc, during the Earthquake. Even before that the roads and hospitals are destroyed by total lack of maintenance, etc, etc. We are losing jobs to economy crisis. Becoming a communist (Marxist) country to make Hugo happy is the furthest thing on our minds. Our real government had to take extreme measures (which we applaud) to oust this person.

I also need to add that our Ex President did not submit a yearly budget to the Congress as our Constitution demands every year. He was hoping to suffocate the Congress and Supreme Court by withholding funds. It is calculated that he spent more than three years budget into his campaign to be reelected (strong prohibited by the Constitution and named as treason). The only way that amount of funds availability is possible is by Hugo Chavez’s oil money. But he never reported any of it to anyone. How can the world expect us to carry a fair trial for this man when he has more cash than several neighboring countries together. Kicking him out of the country was the only way. If this was the 70’s, he would be dead. But like all modern terrorists, they rely on our respect for Human Rights; But that has a limit also.

So yes, by all means, post and repost as much as you can, please. Tomorrow I plan to go around taking pictures and video of the city so you can add them if you wish. I greatly appreciate the support I’m getting from several RD’s. [He refers to a program of Microsoft-oriented software developers.] We are very nervous, scared actually. We know very well that we are right and the media and the Presidents of other countries are wrong and uninformed. To me CNN is the USA’s worst enemy. It’s become ours too.[Emphasis mine]

If he is successful in getting pictures and video, I’ll post them. In the meantime, this corroborates the position set out by McQ in his previous two posts, maintaining that Obama’s response has been… well, let’s euphemistically say “unimpressive”, though my own opinion is that it demonstrates that Obama doesn’t seem to place much value on freedom, here or anywhere else. And don’t get me started on our media.

I wish the Hondurans good fortune in getting through this political crisis. I trust my colleague’s account, and I will be guided by it in my own opinions. You may judge whether you agree.

Honduras

It seems what has happened in Honduras is being characterized by most as a “military coup”. However Fausta, who has been following it all very closely, seems not to be sure that is the case. Instead she and some others are characterizing it as the military enforcing the orders of the Supreme Court and Congress.

Not being a Honduran constitutional expert or even really knowing whether that is legally permissible under their constitution, I’ll leave it to others to decide what the action really is. However, from Fausta, some background info that will get you into the picture. It is all about a referendum which President Manuel Zelaya wanted to hold concerning his term in office which is constitutionally limited to one term. Zelaya wanted to be able to serve another and decided a referendum would do to make that happen. The Supreme Court of Honduras declared such a referendum illegal. Zelaya essentially told them to pound sand (a very Jacksonian reaction):

Background on the referendum, which Zelaya insisted on in spite of it having been declared unlawful:

* When the armed forces refused to distribute the ballots, Zelaya fired the chief of the armed forces, Gen. Romeo Vásquez, and the defense minister, the head of the army and the air force resigned in protest.

* Yesterday the Supreme Court ordered by a 5-0 vote that Vásquez be reinstated.

* Honduras’s Supreme Electoral Tribunal ordered authorities to pick up all the ballots and electoral material, which were held by the country’s air force.

* The country’s Attorney General requested yesterday that Congress oust Zelaya.

* The courts have declared the referendum unlawful. Last Tuesday the Congress passed a law preventing the holding of referendums or plebiscites 180 days before or after general elections. Congress has also named a commission to investigate Zelaya.

This is the first coup in Honduras since 1982 when a democratically elected civilian government came to power .

So the question remains, was the military acting on its own or under the orders of some other constitutional body that had the legal right to order the removal of the president? It may turn out that both sides acted unconstitutionally and illegally. However it should be noted that the Honduran Attorney General had weighed in on the situation:

The attorney general had already made clear that the referendum was illegal, and he further announced that he would prosecute anyone involved in carrying it out.

So it is conceivable that the military was acting under the AG’s orders.

What Zelaya was trying to bypass is this provision in the Honduran Constitution:

Title VII, with two chapters, outlines the process of amending the constitution and sets forth the principle of constitutional inviolability. The constitution may be amended by the National Congress after a two-thirds vote of all its members in two consecutive regular annual sessions.

Apparently, at the moment, all is calm and quiet in Honduras. The Congress has accepted a “letter of resignation” from Zelaya which Zelaya (who is in Costa Rica) says he didn’t write. The Congress has also voted to make their head the new president.

Reaction has been swift and negative. The OAS said it would refuse to recognize the new government. President Obama said he was “deeply concerned” and called on Hondurans “to respect democratic norms, the rule of law and the tenets of the Inter-American Democratic charter”, whatever that means.

It certainly seems that at least one party was trying to circumvent the “rule of law” in this case. Whether the others who removed him were remains to be seen. But the Obama administration is sticking by its one-note foreign policy song:

“We think this can be resolved through dialogue,” said the senior administration official.

Meanwhile, Hugo Chavez, with all his new Russian military equipment is rattling sabers in Venezuela as he sees a part of his Bolivarian Socialist revolution go astray. Of course the first knee-jerk reaction is to blame it on the US. In fact the Obama administration claims to have tried to stop the “coup” when it learned about it (some might see that as “meddling” in the “internal affairs of another country”).

Venezuelan President Hugo Chavez, blamed “the Yankee empire”, and threatened military action should the Venezuelan ambassador to Honduras be attacked; President Evo Morales of Bolivia described Mr Zelaya’s removal as “an assault on democracy”.

Of course both Chavez and Morales have stagemanaged similar assaults on their own Constitutions and managed to pull them off to their advantage.

As Drudge would say – developing …

~McQ

Quote Of The Day

From a commenter on Arnold Kling’s Atlantic site, one of the more succinct summaries of what Waxman-Markey really is:

‘Cap and Tax’ simply provides more opportunities for political favoritism — creating arbitrary credits to be awarded to pet projects while getting others to pay for the favors. Meanwhile the energy expense baseline of the entire economy goes up. Waxman-Markey are gushing about how historic this bill is. That it is — it puts Smoot-Hawley in second place as potentially the most misguided economic legislation of the last 100 years.

Take the time to read Kling’s post as well.

If you’re wondering who will be paying “for the favors”, Conor Clarke at the Atlantic has been kind enough to put that in chart form using the CBO’s data on tax distribution:

cap and trade share by income

But remember you 95% out there – your taxes won’t go up by a single dime – not one dime. Your fuel, electric, transportation, food and just about anything else you can imagine? Dimes won’t even begin to describe the increases you’ll see.

~McQ

Health Care – Plans To Exempt Unions, Tax Others

No “gold plated” care for you – unless you’re in a union.

Yes, friends, it’s payback time in the health care legislation world. Bloomberg reports:

The U.S. Senate proposal to impose taxes for the first time on “gold-plated” health plans may bypass generous employee benefits negotiated by unions.

Senate Finance Committee Chairman Max Baucus, the chief congressional advocate of taxing some employer-provided benefits to help pay for an overhaul of the U.S. health system, says any change should exempt perks secured in existing collective- bargaining agreements, which can be in place for as long as five years.

The exception, which could make the proposal more politically palatable to Democrats from heavily unionized states such as Michigan, is adding controversy to an already contentious debate. It would shield the 12.4 percent of American workers who belong to unions from being taxed while exposing some other middle-income workers to the levy.

This is how they manage to get at your health care plan. Baucus wants to tax any health care benefit that is more costly than those provided federal employees. Those costs are about $4,200 for individuals and $13,000 for families. The claim is they again want to go after the “rich” who have “gold plated” plans. And the example in the Bloomberg article is the $40,543 in health benefits paid to Lloyd Blankfein, chief executive of New York-based Goldman Sachs Group Inc., the fifth largest U.S. bank.

Of course that threshold will also affect people much lower on the financial totem pole than Lloyd Blankfein. For example:

It can also affect companies such as Henderson, Nevada- based Zappos.com, where workers’ $11 per hour pay is supplemented by employer-paid health insurance plans worth about $7,500.

So immediately you have an $11 an hour employee liable for $495 at 15% of the difference. But remember, your taxes won’t go up by a dime. Not a single dime.

Why the desire to exempt unions? Well it gets a favored constituency off their back, is a measure of payback for their support and union members can then enjoy their “gold plated” coverage while $11 an hour workers pay the freight. Don’t believe unions have gold plated coverage. Try this example:

Sandra Carter, a retired Pacific Bell Telephone Co. technician from Stockton, California, said her health benefits, worth about $12,000 per year, were negotiated by the Communications Workers of America. She is unmarried with no children, meaning her individual coverage exceeds benefits paid to federal workers by about $7,800. If that amount were taxed at the 15 percent marginal rate, she would owe $1,170.

“I can’t afford the taxes I pay now,” said Carter, who said she suffers from diabetes. “Why should I get taxed on a benefit that keeps me a functioning person?”

Gee Ms Carter, why should anyone? Why is it any business of the government to limit the coverage to $4,200 and tax the rest. Who is Max Baucus, or anyone, to arbitrarily set the insurance limit at $4,200 for individuals and $13,000 for families and punish those who have better plans through taxation?

I would guess, however, Ms Carter is fine with unions being exempted and also fine with others being taxed in her stead.

Most unions, of course, see themselves as the exceptions deserving of such exemptions:

Anna Burger, secretary-treasurer of the Service Employees International Union, said in an interview that workers have often traded salary increases for better benefits in agreements.

Taxes “shouldn’t be taken from the backs of workers who have bargained away wages and other things for their benefits over the years,” Burger said.

But it is ok if others who’ve negotiated the same sort of exchange privately get nailed, eh Ms Burger? It’s not the principle, it’s the exception which is important here apparently.

To their credit, some unions are actually standing on principle:

“Either way, we are against a tax on health-care benefits in whatever form it takes,” said Jacob Hay, spokesman for the Laborers’ International Union of North America. The union represents 500,000 workers, largely in the construction industry.

Special interest democracy – political payback – so blatant now that you don’t even have to wonder if it is being done. Democrats are shameless in their pursuit of it. If you’re in a favored group, your ship has come in.

~McQ

Waxman-Markey (Cap And Trade) Passes The House

The vote was 219 to 212.

4 votes on the other side and it goes down to defeat.

So, who are these people:

Mary Bono Mack (Calif.), Mike Castle, Mark Steven Kirk (Ill.), Leonard Lance (NJ), Frank LoBiondo (NJ), John McHugh (NY), Dave Reichert (Washington), Chris Smith (NJ)

They’re the Republicans who voted for the bill and assured its passage.

You may want to find some way to thank them for passing one of the largest and most regressive tax increases in US history.

~McQ