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Mike Spence

Bill Leonard on “Hidden Taxes”

Bill Leonard represents taxpayers on the BOE from LA County to the far north of California. In his Leonard Letter he has a couple paragraphs on the new buzz word "Hidden taxes." Here it is.

***Hidden Taxes***

The new buzz words in political debate are “hidden taxes.”  In almost every case, this does not refer to secret payments to the government.  The more accurate definition of the phrase would be “cost shifting.”  Because lots of people use health care services without paying for those services, hospitals and doctors are forced to charge the rest of us more to cover their expenses.  But cost shifting goes on everywhere.  We all pay more for products to cover the extra costs businesses have due to shoplifting or other expenses.

So, if it is true that this hidden tax is a bad thing, then what is the solution?  Apparently the solution is a not-so-hidden-tax.  Instead of paying extra to health care to providers, I will pay more in taxes and then the government will give some subsidy to these providers to pay for the people who do not pay.  That might work if the next step is for health care providers and insurers to lower my costs since I am no longer paying a hidden tax.  Care to bet on the odds of premiums and out-of-pocket costs going down?