Saturday, July 24, 2010

Repeal the CLASS Act Now - New Entitlement Is Long Term Disaster

The CLASS Act was attached to ObamaCare to provide an entitlement plan for individual long term care. Described as a Ponzi scheme even by some Democrats, this bill was used to reduce the ObamaCare deficit while in negotiations, even though, in the long term, CLASS creates huge deficits. Bernie Madoff is in jail. Why are't those that voted for this monstrosity in there with him?

Stopping a Mistake Before It Starts

The history of federal entitlement programs provides a cautionary lesson. With a few exceptions, once a federal entitlement is started, it has been extremely difficult to reverse course. Citizens who participate in the program become strongly invested in its continuation, and politicians are not eager to be accused of reneging on a government promise.

So even if CLASS is widely seen as structurally unsound in future years, Congress may very well find it difficult to cut off enrollment if a large number of people have already signed up for it and are receiving or expecting to receive its benefits.

Consequently, the most prudent step is for Congress to repeal the CLASS Act before any enrollment has started. Under the terms of the new law, the program could begin accepting enrollments as early as January 2011, but it now seems more likely that the program will not launch until regulations give it more definition, perhaps several months later. Regardless, it would be far preferable to reverse course on CLASS before the program builds momentum toward implementation.
Read "The CLASS Act: Repeal Now, or Face Permanent Taxpayer Bailout Later" here.

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