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On Beck, Cato's Tanner falsely claimed Clinton's health plan would force small businesses to pay into health fund

September 18, 2007 3:36 pm ET

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SUMMARY: On Glenn Beck, the Cato Institute's Michael Tanner falsely asserted that under Sen. Hillary Clinton's health care proposal, small business owners would have to provide health insurance to their employees, "or else pay an additional tax into a fund ... that the government will use to pay for that health insurance." In fact, Clinton's plan would provide tax credits to ensure that many small businesses offer health coverage to their employees.

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During the September 17 edition of CNN Headline News' Glenn Beck, Michael Tanner, director of the Cato Institute's health and welfare studies, asserted that Sen. Hillary Rodham Clinton's (D-NY) health care plan would "require" that small business owners provide health insurance to their employees, "or else pay an additional tax into a fund ... that the government will use to pay for that health insurance." In fact, in a speech earlier that day announcing her plan, Clinton had stated: "Now, under my plan, we won't require small businesses to cover employees." Instead, she explained, "we will provide tax credits to ensure that many of them do."

In discussing the impact that Clinton's plan would have on small businesses, host Glenn Beck asked Tanner: "Why would a business ... 'cause I am a small business owner -- if the government is just going to pay for the health care, if I don't provide it, why would I provide it for my people?" Tanner replied: "Well, under her plan, they're actually going to make you. They're going to require every business in America to provide health insurance or else pay an additional tax into a fund ... that the government will use to pay for that health insurance."

But during her speech, Clinton explained how her proposal would affect small businesses:

CLINTON: Now, under my plan, we won't require small businesses to cover employees. Instead we will provide tax credits to ensure that many of them do. These tax credits will be based on size and average wages, so that small businesses can provide health care without destroying their bottom line. This credit could be as high as 50% of premiums for firms with fewer than 25 employees. It's a good start that small businesses are leading the way in creating new jobs. My goal is for them to create new jobs with good health care benefits as well.

The Washington Post's September 18 "Health-Care Score Card" explicitly noted that Clinton's plan does not "require[] small businesses to insure employees or pay tax."

Clinton appeared on the September 18 editions of NBC's Today, ABC's Good Morning America, and MSNBC's Morning Joe to discuss her plan. In none of these appearances did Clinton indicate that her plan would require small businesses that don't provide health insurance to "pay an additional tax" into a government fund, as Tanner asserted.

From the September 17 edition of CNN Headline News' Glenn Beck:

BECK: Michael Tanner is the director of the health and welfare studies at the Cato Institute. Michael, let me ask you this: I noticed that she used the word health care -- universal health care insurance this weekend, which made me immediately think of SSI, Social Security Insurance. It's not insurance when it's guaranteed to pay out, right?

TANNER: Well, you're absolutely right, and insurance is supposed to be the idea of spreading risk among people. This is simply a way of prepaying health care for a great many people. It's going to be hugely expensive. It's going to limit patient choice. It's going to cost jobs, because of the huge mandate on business included in this. This is basically Hillarycare 1993 all over again.

BECK: Help me understand this one part: Why would a business -- let's say, 'cause I am a small business owner -- if the government is just going to pay for the health care, if I don't provide it, why would I provide it for my people?

TANNER: Well, under her plan, they're actually going to make you. They're going to require every business in America to provide health insurance or else pay an additional tax into a fund --

BECK: Ah! That sounds great.

TANNER: -- that the government will use to pay for that health insurance.

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    • Author by wzwriter (September 18, 2007 3:40 pm ET)
         

      Why is anyone surprised that someone from Cato lies?  They do it all the time....

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      • Author by magnolialover (September 18, 2007 3:44 pm ET)
           

        I'm willing to bet that Cato person didn't even read the proposal, and the nitty gritty of it. They are going to continue making things up about her health care proposal, while offering no alternatives. Well, save for the good old "let the free market" decide approach to things. What a cop out that is.

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    • Author by dexteritas0071418 (September 18, 2007 3:43 pm ET)
         

      I don't understand why, if a small business was not providing health insurance to its employees before, and now they have to pay for at least 50% of the premiums (These tax credits will be based on size and average wages, so that small businesses can provide health care without destroying their bottom line. This credit could be as high as 50% of premiums for firms with fewer than 25 employees.), that they are "not paying for it."

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      • Author by snoopy (September 18, 2007 3:47 pm ET)
           

        Maybe because you missed this line?

        The Washington Post's September 18 "[link to www.washingtonpost.com] title="http://www.washingtonpost.com/wp-dyn/content/graphic/2007/09/18/GR2007091800223.html">Health-Care Score Card" explicitly noted that Clinton's plan does not "require[] small businesses to insure employees or pay tax."

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    • Author by nerzog (September 18, 2007 3:58 pm ET)
         

      Let the lying begin. Healthcare reform is dead. Even if Hillary wins...even if we take more seats in Congress...it doesn't have a prayer. The GOP propaganda parrots will browbeat their lesser brethren in the MSM into trashing it and distorting it to the point that not even Hillary will recognize it. The Insurance Companies, Pharmaceutical Companies and Hospital Conglomerates will bribe Congress like they did last time, so there won't be enough votes to pass it anyway. Hide and watch.

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    • Author by arebeeo (September 18, 2007 5:43 pm ET)
         

      Here they go again.  You can bet that Big Pharm and the current healthcare providers, ie the ones who are currently looking at profit first and who messed things up to begin with, are one with the Cato Institute.

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    • Author by redking75687 (September 18, 2007 5:57 pm ET)
         

      Under these mandatory insurance purchase schemes, the worker gets stuck with the costs and the businesses can dump their health care programs. It's a crap plan meant to feed the health care insurance industry at the expense of the working class. If Hillary cared so much, she'd be calling to divert arms spending for health care coverage. Instead, she wants to force us to buy private plans at our own expense, with token "tax breaks" that won't amount to anything for the working poor. The DLC rides again!

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    • Author by Former Democrat (September 18, 2007 8:54 pm ET)
         

      See, here's the problem with this whole article. We are under the assumption that businesses pay taxes. They don't. As a small business owner, I don't pay taxes at all. I merely collect them (from clients and from what I budget to hire an employee) and pass I them on. Believe me, I've had the EXACT same profit margin for the last 17 years. Every small business owner passes new taxes down the line as either higher prices for customers or lower pay for employees. If they don't, they go bankrupt! So if you want to know WHO will pay for the health insurance of small business employees, the answer is the small business employees themselves, or YOU, the customer. NOTHING will come out of my pocket.

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    • Author by onionhead (September 18, 2007 10:11 pm ET)
         

      Wow. Both Beck and Savage on the same day (aka: bigot light and bigot genuine draft, respectively). Haven't seen them for a while.  I thought maybe medical science finally cured their idiocy.

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