High Deductibles and Tax Credits
Mike Ferguson did a talk sponsored by the NJ Chamber of Commerce last week where he provided his solution to the high cost of healthcare for businesses. It involves, as you can see in the screenshot from the web site invitation below, tax-free savings accounts and increasing deductibles for employees.
Essentially, this solution puts the burden on to everyday folks. Higher deductibles for employees mean that when they or family members get sick it costs more out of their pocket to go to the doctor. This saves the insurance company money, which they pass on to the employer. Everybody saves, except the employee.
As for the tax-free savings accounts, they at first blush appear to be a wonderful deal. But on second blush you realize that if the employee is salting away salary tax-free, then the taxpayers have to pay more in income tax to make up for it. That's a savings for the employee as a wage earner but a cost for the employee as a taxpayer.
At the same time, Mike Ferguson voted against common sense measures like allowing the government to negotiate prices of drugs it buys through Medicaid and Medicare. Such a measure alone could cut double digit percentages off the costs of drugs in the United States, saving seniors and the disable millions of dollars.
What is really interesting is that Mike Ferguson chose to meet with the business community only on this issue. We're not suggesting he shouldn't meet with the business community, because they have an interest in this issue, as well. However, it is clear that Mike isn't going to be having any town hall meetings with the voters of the 7th District any time soon on this issue.
I wonder why? You can ask Mike and if he answers post the answer below or write to dumpmike@gmail.com.
Call his office at (908) 757-7835 or write to him from his Congressional Website.











