Thursday, August 6, 2009

Health Surtaxes, ObamaCare, and Incentives

While it is admirable that President Barack Obama is looking to ensure that all Americans can receive adequate healthcare coverage, the more I hear about how he wishes to accomplish it the more I cringe and worry for the fate of American Capitalism. Proposed surtaxes on the very richest of Americans threaten to destroy the incentives to work hard in the pursuit of a more comfortable life. 
I'm going to introduce a certain scenario. A person goes off to an Ivy League university coming from the inner-city projects. He works extremely hard there and lands a very lucrative job upon graduation. He works and he works sacrificing in the hopes of rising to the uppermost ranks of his field. His salary increases and increases and the person lives an increasingly comfortable life. If this person has worked so hard for so long to reach a point where he is CEO, why should our government decide that he must give up more? The man deserves to keep what he has earned. It is unfair for our government to decide that the burden of taxes must be laid upon those who worked the hardest, had the most talent, and ultimately had the skills marketable enough to rise to the top and receive appropriate compensation in a free market economy. 
Although the idea of healthcare for all is a just cause, diminishing incentive and taking from those who have toiled greatly to receive large salaries do not deserve to be discriminated and picked out to face extremely high marginal tax rates at the upper brackets of U.S. taxes.