Terry McTaggart, the president of a Michigan convenience store, liquor and home heating conglomerate, sent his employees a letter this month suggesting they vote for GOP nominee Mitt Romney and threatening to cut their hours in order to save money under President Barack Obama's health care reform law. McTaggart's claims about the Affordable Care Act, however, reveal more about his own lack of business savvy than the legislation's actual effects, according to other small business owners.

McTaggart, whose company, Forward Corporation, also operates dozens of Subway sandwich shops and three hotels, sent workers a note with their paycheck claiming that he does not offer most of them health insurance benefits in order to keep the company "competitive." He stated that he may have to cut back on their hours in order avoid being required to provide them with health insurance under the 2009 law, and said that if he chooses to do this, the employees will have to purchase their own health insurance, or be penalized for violating the individual mandate.

"Retail businesses are very competitive and in the businesses we are in-hotels, restaurants and convenience stores, we are competing with many businesses that do not provide healthcare coverage," McTaggart wrote. "Do I like that fact? No, but we operate in that competitive environment."

All of this, McTaggart claims, is due to the fact that his 650-person operation will be unable to compete with firms that have fewer than 50 employees. The health care law does not require companies of that size to provide their workers with health insurance.

"I guess the government thinks that if you work for someone who employs less than 50, you do not deserve healthcare," McTaggart wrote. "Try to make sense of that. What has been created for us is a competitive nightmare. The law essentially puts us in a position where we cannot compete with others in the same industry ... For those of you who are working full time and need those hours, you may need to work two jobs."

McTaggart goes on to suggest that a Romney presidency will be better for his workers' own bottom line than another term under Obama.

"There are stark choices between the two political parties in this November election and you will need to vote for the person that best represents your best interest. President Obama will continue with the current law and Mitt Romney has said he will repeal and replace it."

McTaggart's claims only hold up if his company isn't actually making money, or is incapable of raising prices by small amounts. A financially robust firm could just eat the cost of providing health insurance to its employees, and live with slightly lower profit margins.

"Any competitive disadvantage would be pretty damn small," said economist Dean Baker, co-Director of the Center for Economic Policy and Research.

Forward's website describes it as "family owned and operated," so lower profits for the entire corporation likely mean smaller paychecks for McTaggart himself. By raising concerns about the "competitive environment," McTaggart hides a choice he makes between his own payday and his employees'.

"What's that say about how much your employer cares about you?" said Brian England, president of British American AutoCare, a small business in Columbia, Md. "That's the most short-sighted thing to do."

But even if Forward really is struggling to make ends meet, McTaggart could always just pass along the higher costs of health insurance to his customers.

"Look at his numbers," said England. "It costs $1,500 a year to provide a single person with health insurance. For a part-time person, that's probably a dollar an hour. If that person sells 10 subs in an hour, that's 10 cents a sub. You're not going to go into a Subway store and say, 'Oh my God, it's 10 cents more,' and leave."

"He's down to pennies per transaction," said Lew Prince, who owns Vintage Vinyl, a record store in St. Louis. "Does he really expect us to believe that someone will drive miles to save a couple of cents on bottle of sodapop?"

It is also extremely rare for large or mid-size companies to buckle under the competition they face from mom-and-pop operators. Competitive pressures are generally much stronger from larger enterprises than from small stores.

"Usually they fear the larger companies more than the smaller companies," Baker said.

"It's the big chains," said England. "The places that are like me, we are sort of together. The Merchant Tires and all these big places try to nibble around your edges."

McTaggart also claimed that the company's "reluctance to give wage increases" has been because "the cost of the healthcare law to Forward is unknown at this time."

"We have been given two lump sum bonuses, but have only been able to commit to one permanent increase because of the uncertainty since the law was passed," McTaggart wrote.

"By this logic, no one should ever get a raise," said Prince, noting that retailers face more powerful forces affecting prices on a regular basis.

McTaggart joins a handful of CEOs who have urged their employees to oppose Obama, including Westgate Resorts founder David Siegel and the Koch Brothers. Corporations were banned from pressuring their employees on voting for decades, but the Supreme Court's 2010 Citizens United decision freed employers to campaign among their workers as a form of free speech.

Romney has encouraged employers to pass their views along to their employees. The National Federation of Independent Business, which almost exclusively backs GOP candidates, will host an event this week to educate bosses on how best to pressure their workers come Election Day.

McTaggart and Forward declined to comment for this article. The company's mission statement includes a paean to the well-being of its employees: "Our growth will be built upon a foundation of mutual trust and respect among all employees with everyone enjoying the opportunity to gain by being a part of Forward."

Read the full letter:

October 16, 2012

Dear Valued Associate,

Sometimes we have choices to make that are unpleasant or do not reflect what is in our best interest. The Affordable Care Act (Obama Care) forces us to do just that. The intent of this letter is to give you a little insight into what impact the law may have on you and what options the Company is considering.

Since the passage of the healthcare law and its inherent cost, you and everyone who works here have been paying a price for it. Those who have insurance have paid higher premiums and everyone has been affected by the Company's reluctance to give wage increases because the cost of the healthcare law to Forward is unknown at this time. While the slow economy has also been a factor, this new mandate has been the real obstacle to "business as usual". We have been given two lump sum bonuses, but have only been able to commit to one permanent increase because of the uncertainty since the law was passed. I am in favor of providing healthcare for everyone, but what I would like to do and what the reality of the situation is creates a serious competitive dilemma. Please bear with me while I try to give you a little history and explain what we see as the issues and options.

I will begin by explaining why we do not currently provide healthcare for everyone. When we originally started in the convenience store business, we provided healthcare for everyone who worked here. What we found out, after a couple of years, is that our competitors were not providing health coverage. They were able to price more aggressively than we could and we could not make any money being in the retail convenience business. We had a tough choice to make. We either had to make changes or we would have to give up our plan to grow in the convenience business. We discontinued coverage for most positions. Retail businesses are very competitive and in the businesses we are in-hotels, restaurants and convenience stores, we are competing with many businesses that do not provide healthcare coverage. Do I like that fact? No, but we operate in that competitive environment.

The new healthcare law mandates that we cover everyone or pay a penalty because we employ more than 50 employees across our various companies. Many of the businesses that we compete with employ less than 50 and they will not be required to provide health coverage. I guess the government thinks that if you work for someone who employs less than 50, you do not deserve healthcare. Try to make sense of that. What has been created for us is a competitive nightmare. The law essentially puts us in a position where we cannot compete with others in the same industry. It only takes one business with an advantage to make a market unprofitable for those of us who have to comply with a government mandate.

The easiest example that I can give you would be our Subway stores. In Bay City, we compete with other Subway's that are operated by a company that employs less than 50. We will be required to provide insurance or pay a penalty - they will not. We sell the same product at approximately the same price with the same cost of food and the same image and yet we will be at a major disadvantage if we can not pass on the increased cost of insurance. If the owner of a store in that market decides he wants to take advantage of the situation in their pricing , we will not be able to compete and will be forced to sell or quit operating. The new law does to us what our competitors have not been able to do and that is to make us uncompetitive.

What are our options as a company? One option is to provide the minimum insurance required by law for all covered employees and hope that we can increase our prices enough to pay for it. This is highly unlikely and our competition will ultimately decide this for us. Another option is to cover some employees and reduce the hours worked below 30 for the others. If you work less than 30 hours per week you are considered part-time and do not qualify for coverage under the law.

We have been concerned that our competition would reduce hours to avoid providing coverage, forcing us to do the same to be competitive, and we were correct. Darden industries (Red Lobster, Olive Garden, Longhorn etc) just announced their plan to do this and we hear that Meijer has also started reducing hours. That will force everyone they compete with to do the same and this will spill over to other businesses as well. For those of you who are working full time and need those hours, you may need to work two jobs.

What will change for you? You will be required by law to have health insurance even if you are part-time. If you are covered by the company you will be required to pay a portion of that cost. We estimate your cost will be about $1,500/year for single coverage and approximately $3,800/family. You can refuse the coverage, but you will then be subject to a tax/penalty by the government for not having coverage. That penalty is $95/adult person in year 2014. $325/adult person in 2015 and $695/adult person in 2016 (Dependents under 18 will have a penalty of one half the adult amount). There are various subsidies built into the law to help low income people, but I don't believe those have been clearly defined at this time and I cannot tell you what those are.

We need to reform the system but we feel the current legislation is not going to do it. While the government says that the healthcare law will reduce the Federal deficit, they do not mention who is going to pay for it. You will pay a penalty/tax if you do not have coverage. The company will either pay the insurance bill, suffer a penalty, or reduce some full-time employees to part-time. The state of Michigan will also pay more under Medicaid after a period of years and all of us will help pay for this too. The Medicare fund is being raided to fund this law at the expense of our seniors.

Those of you who currently have insurance here should expect changes in both coverage and cost. To further complicate our situation, we just received notification that our health care premiums from Blue Cross Blue Shield will be 26% higher next year.

Please study this issue for yourself. There are stark choices between the two political parties in this November election and you will need to vote for the person that best represents your best interest. President Obama will continue with the current law and Mitt Romney has said he will repeal and replace it. Now is the time for you to get informed.

Sincerely,

Terry McTaggart
President

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  • Healthcare In America Is Already 'The Best In The World'

    One of the more positive sounding admonitions from health care reform opponents was that the United States had "the best health care in the world," so why would you mess with it? Well, it's true that if you want the experience the pinnacle of medical care, you come to the United States. And if you want the pinnacle of haute cuisine, you go to Per Se. If you want the pinnacle of commercial air travel, you get a first class seat on British Airways. Now, naturally, you wouldn't let just anyone mess with someone's tasting menu or state-of-the-art air-beds. But like anything that's "the best," the best health care in the world isn't for everybody. The costs are prohibitively high, the access is prohibitively exclusive, and the resources are prohibitively scarce. What do the people in America who "fly coach" in the health care system get? Well, at the time of the health care reform debate, they were participating in a system that was, by all objective measurements, <a href="http://www.huffingtonpost.com/2010/06/24/us-health-care-expensive_n_624248.html">overpriced and underperforming</a> -- if you were lucky enough to be participating in it. As anyone who's fortunate enough to have employer based health care or unfortunate enough to have a pre-existing condition can tell you, health care for ordinary people already involved all of those things that we were told would be a feature of the Affordable Care Act -- long waits, limited choice, and rationing. When the <a href="http://www.commonwealthfund.org/Content/Publications/Fund-Reports/2010/Jun/Mirror-Mirror-Update.aspx">Commonwealth Fund rated health care systems by nation</a>, the top marks in the surveyed categories went to the United Kingdom, New Zealand and the Netherlands. Ezra Klein examined the study, and <a href="http://voices.washingtonpost.com/ezra-klein/2010/06/us_health-care_system_still_ba.html">observed</a>: "The issue isn't just that we don't have universal health care. Our delivery system underperforms, too. 'Even when access and equity measures are not considered, the U.S. ranks behind most of the other countries on most measures. With the inclusion of primary care physician survey data in the analysis, it is apparent that the U.S. is lagging in adoption of national policies that promote primary care, quality improvement, and information technology.'"

  • Death Panels

    The only thing that perhaps matched the vastness of the spread or the depth of the traction of the "death panel" lie was the predictability that such a lie would come to be told in the first place. After all, this was a Democratic president trying to sell a new health care reform plan with the intention of opening access and reducing cost to millions of Americans who had gone without for so long. What's the best way to counter it? Tell everyone that millions of Americans would have increased access ... <i>to Death!</i> The best account of how the "death panel" myth was born into this world and spread like garbage across the landscape has been penned by Brendan Nyhan, who in 2010 wrote "Why the "Death Panel" Myth Wouldn't Die: Misinformation in the Health Care Reform Debate." <a href="http://www.dartmouth.edu/~nyhan/health-care-misinformation.pdf">You should go read the whole thing</a>. But to summarize, the lie began where many lies about health care reform begin -- with serial liar Betsy McCaughey, who in 1994 <a href="http://www.huffingtonpost.com/2009/10/07/andrew-sullivans-mccaughe_n_313157.html">polluted the pages of the New Republic</a> with a staggering pile of deception in an effort to scuttle President Bill Clinton's health care reform. As Nyhan documents, she re-emerged in 2009 when "she invented the false claim that the health care legislation in Congress would result in seniors being directed to 'end their life sooner.'" Nyhan: "McCaughey's statement was a reference to a provision in the Democratic health care bill that would have provided funding for an advanced care planning for Medicare recipients once every five years or more frequently if they become seriously ill. As independent fact-checkers showed (PolitiFact.com 2009b; FactCheck.org 2009a), her statement that these consultations would be mandatory was simply false--they would be entirely voluntary. Similarly, there is no evidence that Medicare patients would be pressured during these consultations to "do what's in society's best interest...and cut your life short." But the match that lit the death panel flame was not McCaughey, it was Sarah Palin, who repeated McCaughey's claims in a Facebook posting and invented the term "death panel." As Nyhan reports, Palin's claims were met with condemnation from independent observers and factcheckers, but the virality of the term "death panel" far outstripped its own debunking. To this day, the shorthand for this outrageous falsehood remains more firmly planted in the discourse than the truth. One thing worth pointing out is that Palin, in creating the term "death panel," <i>intended</i> to deceive people with it. In an interview with the <em>National Review</em>, <a href="http://www.nationalreview.com/articles/228636/rogue-record/rich-lowry">Palin admitted</a>: "The term I used to describe the panel making these decisions should not be taken literally." Rather, it was "a lot like when President Reagan used to refer to the Soviet Union as the 'evil empire.' He got his point across." Of course, while Reagan was exaggerating for effect, he wasn't trying to prey on the goodwill of those who were listening to him.

  • The Affordable Care Act Is A "Jobs-Killer"

    Naturally, the GOP greeted anything that the Obama White House did -- from regulating pollution to flossing after meals -- as something that would "kill jobs." The Affordable Care Act was no different. As you might recall, Republicans' first attempt at repeal came in the form of an inartfully named law called the "Repealing the Job-Killing Health Care Law Act." But did the health reform plan threaten jobs? Not by any honest measure. <a href="http://www.mcclatchydc.com/2011/01/17/106950/is-health-care-law-really-a-job.html">Per McClatchy Newspapers</a>: <blockquote>"The claim has no justification," said Micah Weinberg, a senior research fellow at the centrist New America Foundation's Health Policy Program. Since the law contains dual mandates that most individuals must obtain health insurance coverage and most employers must offer it by 2014, "the effect on employment is probably zero or close to it," said Amitabh Chandra, a professor of public policy at Harvard University.</blockquote> As McClatchy reported, the "job-killing" claim creatively used the "lie of omission" -- relying on "out of date" data or omitting "offsetting information that would weaken the argument." The Congressional Budget Office, playing it straight, deemed it essentially too premature to measure what the effect the bill would have on the labor market. At the time, Speaker John Boehner dismissed the CBO, saying, "CBO is entitled to their opinion." Perhaps, but lately, job growth in the health care industry has <a href="https://www.advisory.com/Daily-Briefing/2012/03/07/Jobs-report-preview" target="_hplink">bucked the economic downturn and health care has remained a robust sector of employment</a>. And it stands to reason that enrolling another 30 million Americans into health insurance will increase the demand for health care services and products, which in turn should trigger the creation of more jobs. Is there a downside? Sure. More demand, and greater labor costs, could push health care prices upward even as other effects of health reform push them down. But it's more likely that repealing the bill will have a negative impact on jobs than retaining it.

  • The Affordable Care Act Would Add To The Deficit

    The only thing more important than painting the Affordable Care Act as a certain killer of jobs was to paint it as a certain murderer of America's fiscal future. Surely this big government program was going to push indebtedness to such a height that our servitude to our future Chinese overlords was a <i>fait accompli</i>. <a href="http://www.huffingtonpost.com/2010/03/18/cbo-score-on-health-care_n_502543.html">As Ryan Grim reported in May of 2010</a>, the CBO disagreed: <blockquote>Comprehensive health care reform will cost the federal government $940 billion over a ten-year period, but will increase revenue and cut other costs by a greater amount, leading to a reduction of $138 billion in the federal deficit over the same period, according to an analysis by the Congressional Budget Office, a Democratic source tells HuffPost. It will cut the deficit by $1.2 trillion over the second ten year period. The source said it also extends Medicare's solvency by at least nine years and reduces the rate of its growth by 1.4 percent, while closing the doughnut hole for seniors, meaning there will no longer be a gap in coverage of medication.</blockquote> Recently, the CBO updated its ten-year estimate by dropping off the first two years of the law (where there was little to no implementation) and adding two years at the back end (during which time there would be full implementation). As you might imagine, replacing two years of low numbers with two years of higher numbers increased the ten-year estimate. But opponents of the bill immediately freaked out and declared the costs to have skyrocketed. <a href="http://nymag.com/daily/intel/2012/03/obamacare-haters-angered-by-facts.html">As Jonathan Chait reported</a>: <blockquote>The outcry was so widespread that the CBO took the unusual step of releasing a second update to explain to outraged conservatives that they were completely misreading the whole thing: "Some of the commentary on those reports has suggested that CBO and JCT have changed their estimates of the effects of the ACA to a significant degree. That's not our perspective. ... Although the latest projections extend the original ones by three years (corresponding to the shift in the regular ten-year projection period since the ACA was first being developed), the projections for each given year have changed little, on net, since March 2010." That is CBO-speak for: "Go home. You people are all crazy."</blockquote> As Chait goes on to note, the CBO now projects that "the law would reduce the deficit by slightly more than it had originally forecast."

  • The Affordable Care Act $500 Billion Cut From Medicare

    Normally, if you tell Republicans that you're going to cut $500 billion from Medicare, they will respond by saying, "Hooray, but could we make it <i>$700 billion</i>?" But the moment they got it into their heads that the Affordable Care Act would make that cut from Medicare, suddenly everyone from the party of ending Medicare As We Know It, Forever got all hot with concern about what would happen to these longstanding recipients of government health care. In fairness, <a href="http://www.factcheck.org/2010/03/a-final-weekend-of-whoppers/">as Factcheck pointed out</a>, the GOP opponents of Obama's plan were simply picking up a cudgel that had recently been wielded by the president himself: <blockquote>Whether these are "cuts" or much-needed "savings" depends on the political expedience of the moment, it seems. When Republican Sen. John McCain, then a presidential candidate, proposed similar reductions to pay for his health care plan, it was the Obama camp that attacked the Republican for cutting benefits.</blockquote> <a href="http://www.factcheck.org/2010/03/a-final-weekend-of-whoppers/">Nevertheless</a>! <blockquote>Whatever you want to call them, it's a $500 billion reduction in the growth of future spending over 10 years, not a slashing of the current Medicare budget or benefits. It's true that those who get their coverage through Medicare Advantage's private plans (about 22 percent of Medicare enrollees) would see fewer add-on benefits; the bill aims to reduce the heftier payments made by the government to Medicare Advantage plans, compared with regular fee-for-service Medicare.</blockquote> The <i>New England Journal of Medicine</i> <a href="http://www.nejm.org/doi/pdf/10.1056/NEJMp1005588">concurred</a>: <blockquote>A phased elimination of the substantial overpayments to Medicare Advantage plans, which now enroll nearly 25% of Medicare beneficiaries, will produce an estimated $132 billion in savings over 10 years. [...] The ACA also produces nearly $200 billion in savings by assuming that providers can improve their productivity as firms in other industries have done. On the basis of this presumed improvement, the law reduces Medicare's annual "market basket" updates for most types of providers - a provision that has generated controversy.</blockquote> The law doesn't cut any customer benefits, just the amount that providers get paid. Hospitals and drug companies agreed to these cuts based on the calculation that more people with insurance meant more people consuming what they sell and, more importantly for the hospitals, fewer people getting treated and simply not paying for it.

  • The Affordable Care Act Provides Free Health Care For Undocumented Immigrants

    This lie was launched to prominence with the help of a false accuser, South Carolina Rep. Joe Wilson, who famously heckled President Barack Obama during an address to a Joint Session of Congress by yelling "You lie!" after the president had mentioned that undocumented immigrants would not be eligible for the credits for the bill's proposed health care exchanges. As Time's Michael Scherer pointed out, this was not much of a challenge for factcheckers: <blockquote>In the Senate Finance Committee's working framework for a health plan, which Obama's speech seemed most to mimic, there is the line, "No illegal immigrants will benefit from the health care tax credits." Similarly, the major health-care-reform bill to pass out of committee in the House, H.R. 3200, contains Section 246, which is called "NO FEDERAL PAYMENT FOR UNDOCUMENTED ALIENS."</blockquote> In fact, <a href="http://voices.washingtonpost.com/ezra-klein/2010/04/why_immigrants_get_short_shrif.html">as Ezra Klein pointed out</a>, the Affordable Care Act "goes out of its way to exclude" undocumented immigrants: <blockquote>As the AP points out...there are about 7 million unauthorized immigrants who will be prohibited from buying insurance on the newly created exchanges, even if they pay out of their own pocket. And the exclusion of this group from health reform -- along with other restrictions that affect fully legal immigrants as well -- could create a massive coverage gap that puts a strain on the rest of the health system as well.</blockquote> Klein goes on to add that "immigrants-rights advocates tried to prevent this scenario from happening," but they ended up losing to the politics of the day. The concession they won was a promise from the president that he would shepherd a comprehensive immigration reform package through the legislature. They lost that round, too.

  • Republicans, And Their Ideas, Were Left Out Of The Bill And The Process

    Were health care policies dear to Republicans left out of the health care reform bill? Totally! <a href="http://thinkprogress.org/health/2009/10/29/171026/top-10-reasons-why-republicans-should-support-the-house-health-bill/">Unless we're counting the following</a>: --Deficit-neutral bill --Longterm cost reduction --Interstate competition that allows consumers to purchase insurance across state lines --Medical malpractice reform --High-risk pools --An extension of the time young people were allowed to remain on their parents' policies --No public money for abortion --Small business exemptions/tax credits --Job wellness programs --Delivery system reform In fact, the Democrats were eager to get GOP input and enthusiastic about including many of their desired components in the bill. Oh, and did we mention that the Affordable Care Act was modeled on a reform designed and implemented by a former Republican governor and presidential candidate, whose innovation was widely celebrated by the GOP while said former governor was running for president? And did we mention that the individual mandate that was used in Romneycare to ensure "no free riders" was originally dreamed up by the Heritage Foundation? And did we add that additional DNA of the Affordable Care Act was borrowed from the Senate GOP alternative to the Clinton plan in the 1990s and the <a href="http://www.bipartisanpolicy.org/news/press-releases/2009/08/bipartisan-policy-center-releases-report-improving-health-care-quality-a" target="_hplink">2009 Bipartisan Policy Committee plan</a>, which was endorsed by Tom Daschle, Howard Baker, and Bob Dole? As for the process, you might recall that the White House very patiently waited for the bipartisan Gang Of Six to weigh in with its own solution, and openly courted one Republican gang member, Sen. Chuck Grassley, long after it was clear to every reporter inside the Beltway that Grassley was intentionally acting in bad faith. And perhaps you don't recall the bipartisan health care summit that was held in March of 2009? if so, don't feel bad about it -- RNC Chairman Michael Steele couldn't remember it either, <a href="http://politicalcorrection.org/blog/201002250005">when he yelled at the president for not having one</a>.

  • The Demonization Of 'Deem And Pass'

    So, here's a fun little story about obscure parliamentary procedures. In May of 2010, as the health care reform michegas was steaming toward its endgame, it looked like the measure might fall. The Senate had passed a bill, but the House was stuck in a bit of a jam. It had no other choice but to take a vote on the Senate's bill, because if the House bill ended up in a conference committee to be reconciled with the Senate's, the whole resulting she-bang was assured of a filibuster, as the Democrats had, in the intervening period, lost their Senate supermajority. But the House had a problem. <a href="http://www.huffingtonpost.com/2010/03/16/health-care-opponents-dem_n_501353.html">As I wrote at the time</a>: <blockquote>House members are averse to doing anything that looks like they approve of the various side-deals that were made in the Senate -- like the so-called "Cornhusker Kickback." The House intends to remove those unpopular features in budget reconciliation, but if they pursue budget reconciliation on a standard legislative timeline -- where they pass the Senate bill outright first and then go back to pass a reconciliation package of fixes -- they'd still appear to be endorsing the sketchy side deals, and then the GOP would jump up and down on their heads. Enter "deem and pass." Under this process, the House will simply skip to approving the reconciliation fixes, and "deem" the Senate bill to be passed. By doing it this way, the Democrats get the Senate bill passed while simultaneously coming out against the unpopular features of the same.</blockquote> "Deem and pass" is the aforementioned obscure parliamentary procedure. And here's the thing about obscure parliamentary procedures -- everyone <i>loves</i> them when their side is doing them, but when they're being <i>done to you</i>, then they are basically evil schemes from the blasted plains of Hell. So if you're guessing that the Republicans declared the Democrats' use of "deem and pass" -- which also carried the moniker "the Slaughter Rule," after Rep. Louise Slaughter, who proposed its use in this instance -- to be a monstrous and unprecedented abuse of power, then give yourself a prize! And give yourself a bonus if you guessed that in reality, the GOP had used "deem and pass" <i>lots of times</i>. <a href="http://www.huffingtonpost.com/2010/03/16/house-has-long-history-of_n_500623.html">As Ryan Grim reported</a>, "deeming resolutions" had been in use dating back to 1933, and in 2005 and 2006, Republicans employed them 36 times. Other Republicans complained that Slaughter was supporting a tactic that she once vigorously opposed. <a href="http://voices.washingtonpost.com/ezra-klein/2010/03/the_arms_race_of_rules.html">That's true</a>! She fought the "deem and pass" during the Bush administration and lost. Which is precisely when she learned how effective it could be!

  • The Affordable Care Act Would Create A Mad Army of IRS Agents

    Lots of people wouldn't mind having better access to more affordable health care. But what if it came with thousands of IRS agents, picking through your stool sample? That sounds pretty bad. It also sounds pretty implausible! But that was no impediment to multiple health care reform opponents making claims that the tax man was COMMINAGETCHA! In this case, the individual mandate -- which requires people to purchase insurance or incur a tax penalty -- provided the fertile soil for this deception to spread. A March 2010 floor speech from a panicked Sen. John Ensign was typical of the genre: <blockquote>My amendment goes to the heart of one of the problems with this bill. There is an individual mandate that puts fines on people that can also attach civil penalties. And 16,500 new IRS agents are going to be required to be hired because of the health care reform bill.</blockquote> March of 2010 was a pretty great time for this particular lie. In one five day period, Ensign was joined by Reps. Paul Ryan ("There is an individual mandate. It mandates individuals purchase government-approved health insurance or face a fine to be collected by the IRS which will need $10 billion additional and 16,500 new IRS agents to police and enforce this mandate."), Pete Sessions ("16,000 new IRS agents will be hired simply to make sure that this health care bill is enforced.") and Cliff Stearns ("There is $10 billion to hire about 16,000 new IRS agents to enforce the individual mandate on every American"). All wrong! <a href="http://factcheck.org/2010/03/irs-expansion/">Per Factcheck</a>: <blockquote>This wildly inaccurate claim started as an inflated, partisan assertion that 16,500 new IRS employees might be required to administer the new law. That devolved quickly into a claim, made by some Republican lawmakers, that 16,500 IRS "agents" would be required. Republican Rep. Ron Paul of Texas even claimed in a televised interview that all 16,500 would be carrying guns. None of those claims is true. The IRS' main job under the new law isn't to enforce penalties. Its first task is to inform many small-business owners of a new tax credit that the new law grants them -- starting this year -- which will pay up to 35 percent of the employer's contribution toward their workers' health insurance. And in 2014 the IRS will also be administering additional subsidies -- in the form of refundable tax credits -- to help millions of low- and middle-income individuals buy health insurance. The law does make individuals subject to a tax, starting in 2014, if they fail to obtain health insurance coverage. But IRS Commissioner Douglas Shulman testified before a hearing of the House Ways and Means Committee March 25 that the IRS won't be auditing individuals to certify that they have obtained health insurance.</blockquote> As Factcheck goes on to note, <a href="http://www.gpo.gov/fdsys/pkg/BILLS-111hr3590enr/pdf/BILLS-111hr3590enr.pdf">on page 131 of the bill that was passed</a>, the IRS is explicitly prohibited from "from using the liens and levies commonly used to collect money owed by delinquent taxpayers, and rules out any criminal penalties for individuals who refuse to pay the tax or those who don't obtain coverage."

  • Affordable Care Act Bill Is Way Too Long And Impossible To Read!

    Oh, Congresscritters, the poor dears! So many bills to read and so little time -- between raising campaign cash at lush fundraisers and receiving marching orders from powerful corporate interests -- to actually read them all. <a href="http://www.washingtonmonthly.com/archives/individual/2009_08/019629.php">And this Affordable Care Act was a real humdinger of a long bill</a>. And long bills are bad because length implies complication and complication requires study and study implies some form of "work." So the proper thing to do is to mulch the entire print run of the bill and use it to power the boiler that heats the "sex dungeon" in the Longworth Office Building, the end! Actually, reading the bill is not that hard, despite the complaints. As the folks at <a href="http://computationallegalstudies.com/2009/11/08/facts-about-the-length-of-h-r-3962/">Computational Legal Studies were able to divine</a>: <blockquote>Those versed in the typesetting practices of the United States Congress know that the printed version of a bill contains a significant amount of whitespace including non-trivial space between lines, large headers and margins, an embedded table of contents, and large font. For example, consider page 12 of the printed version of H.R. 3962. This page contains fewer than 150 substantive words. We believe a simple page count vastly overstates the actual length of bill. Rather than use page counts, we counted the number of words contained in the bill and compared these counts to the number of words in the existing United States Code. In addition, we consider the number of text blocks in the bill -- where a text block is a unit of text under a section, subsection, clause, or sub-clause.</blockquote> <a href="http://www.huffingtonpost.com/2009/11/09/house-health-care-bill-ac_n_350810.html">As HuffPost noted in March of 2010</a>, "the total number of words in the House Health Reform Bill are 363,086," and when you throw out the words in the titles and tables of contents and whatnot, leaving only words that "impact substantive law," the word count drops to 234,812. "Harry Potter And the Order Of The Phoenix," a popular book read by small children, is 257,000 words long. (Although in fairness to Congress, the Affordable Care Act contains very few exciting accounts of Quidditch matches.)

  • The 2012ers Join The Fun

    We couldn't have a list of Affordable Care Act distortions without noting the ways some of your 2012ers have added to the canon. Herman Cain said that if the ACA had been implemented, <a href="http://thehill.com/blogs/healthwatch/politics-elections/177511-video-cain-if-obamacare-had-been-implemented-already-id-be-dead-">he'd be dead</a>. Not likely! The new law expands coverage so that uninsured individuals who face what Cain faced (cancer) have a better chance of getting coverage, and it restricts insurers from tossing cancer patients off the rolls based on their "pre-existing condition." But more to the point, Cain would have always been the wealthy guy who could afford to choose his doctor and pick the care he wanted. The Affordable Care Act doesn't prohibit wealthy people from spending money. Rick Santorum says that his daughter, who is diagnosed with a genetic disorder called trisomy 18 and who required special needs care, <a href="http://blogs.desmoinesregister.com/dmr/index.php/2011/04/25/santorum-more-disabled-people-will-be-denied-care-under-obamacare/">would be "denied care" under the Affordable Care Act</a>. Nope! Again, the law restricts insurers from throwing people with pre-existing conditions off their rolls. And for individuals under 19, that went into effect in September of 2010. Michele Bachmann believes that the Affordable Care Act would open "sex clinics" in public schools. This is Michele Bachmann we're talking about. <a href="http://www.huffingtonpost.com/2009/10/01/bachmann-sex-clinics-will_n_306292.html">Do you even need to ask</a>? And finally, Mitt Romney has said, as recently as March 5, that he never intended his CommonwealthCare reform to serve as a "model for the nation." "Very early on," he insisted, "we were asked -- is what you've done in Massachusetts something you would have the entire government do, the federal government do? I said no, from the very beginning." Unless "very early on" and "from the very beginning" mean something different from the conventional definition of those phrases, <a href="http://thinkprogress.org/health/2012/03/05/438044/romney-mandate-model-video/">Romney should augment his daily pharmaceutical intake with some memory-enhancing gingko biloba</a>.

  • So Many More To Choose From!

    Obviously, we did what we could to include as many of these lies and distortions as possible, but there's no way to include them all. If you're a completist, however, be sure to check out the <a href="http://www.thefrisky.com/2012-03-14/fact-or-fiction-obamacare%E2%80%99s-1-dollar-abortions/">Impossible Tale Of The One-Dollar Abortion</a>, the <a href="http://www.washingtonpost.com/wp-dyn/content/article/2011/02/09/AR2011020905682.html">Story of the State-Based Inflexibility That Wasn't</a>, <a href="http://politicalcorrection.org/factcheck/201101210006">The Curious Case of the Politically Connected Waivers</a> and <a href="http://www.minnpost.com/dc-dispatches/2011/03/michele-bachmanns-health-care-cover-charges-hard-fathom">Nancy Drew And The Hidden $105 Billion Expenditure</a>.