The High Cost of Doing Business in New York and Medicaid
By Jim Willis on Dec 12, 2007 in Business, Government & Politics, Taxes & Spending | Printable Version
The Public Policy Institute of New York State reports this cheery news: New York is the second most costly state in the nation for businesses. The most costly state? Hawaii, which is separated from the mainland by half an ocean.
The Institute uses the following criteria when making its evaluation: average annual wages, cost of electricity, commercial rents and tax burden. Obviously, New York comes out at or near the top in each of those categories, earning us the dubious distinction of being business unfriendly.
I think there’s one big reason why New York’s taxes are so high: Medicaid. As you may know, Medicaid is socialized medicine for some 50 million people in our country. People who “can’t afford” health care get it free or mostly free from Uncle Sam and the 50 states.
I’ve written before about my search for affordable health insurance. It’s a sad thing when Medicaid recipients get better health benefits than those of us who pay out the nose for it–and we help fund it!
Here’s the sad facts about New York’s Medicaid program and why I say it’s sinking us and sinking us fast: New York ranks #1 in both per capita spending and total spending for Medicaid of all the 50 states. You read that right, #1. We spend more money on Medicaid than either California or Texas, and they have larger populations!
In 2006, New York State spent $44.7 BILLION on Medicaid. Is that obscene or what? If you break it down per capita, we spent $2,316 for every man, woman and child in this state to fund health care for Medicaid recipients. Last year California spent $939 per capita, and Texas spent $771 per capita. (See this page for a breakdown of all 50 states.)
Why is New York’s spending so high? We offer the Cadillac version of Medicaid. Instead of offering a “bare bones” or limited set of options, we throw the door wide open and offer just about everything allowable under the Federal guidelines. No other state’s Medicaid plan matches ours in generosity (and stupidity).
The state and the counties can’t afford to grant tax breaks to businesses which would attract more (and better paying) jobs simply because they can’t afford to! We’re fully invested in socialism–the redistribution of some people’s money to other people. It is immoral and unjust. There is nothing compassionate about it.
My solution? Reduce Medicaid spending immediately. Let’s start by limiting it to $1,000 per capita and reducing the number of plan options. Let the welfare frauds that don’t like it move to another state where they’re stupider than we are and will pay them more. Until we take drastic action to stop this insanity, New York and Broome County will continue to bleed jobs and taxpayers, and continue to attract pedophiles and welfare cheats.
Are you as tired of paying for other people’s health care as I am? Leave me a comment!
Technorati Tags: Binghamton, Public Policy Institute of New York State, New York State, Medicaid, high taxes
Roger Thornhill | Dec 13, 2007 | Reply
Precisely the reason I will leave the People’s Republic of New York as soon as I can tap my retirement and move to New Hampshire, where there are NO income taxes and NO sales taxes.
There is no hope in NY when the Liberal Socialists outnumber Republicans 5 -3, and Shumer and Hilly and Spitzer are twisting the fiscal controls. Until NYC is cut loose from the State (fat chance) it will always be this way.
In NH, my feeble one vote matter a lot more, too as there are less than 750,000 in the state.
Roger Thornhill
Jim Willis | Dec 13, 2007 | Reply
Well Roger, I’d be lying if I didn’t say I’ve thought about that myself–a lot. It does seem hopeless, I’ll grant you that. When you do move, it will be our loss. I guess I’ll soldier on–at least for now! If you tell me the water is real warm in NH and “come on in” I may take a second look!
Roger Thornhill | Dec 13, 2007 | Reply
Jim: The 13 mile section of beaches from Portsmouth to Seabrook can be beautiful from May-September.
Lob-stahs are excellent too.
We’re seriously looking at Rye, NH and have vacationed there for many years. We’ve staked out our spot.
The current Police Commish in Portsmouth (ex Police Chief), Bill Russo (who’s a fulltime barber as well) when asked what the worst crime in town always answers “overtime parking”
It’s always a thrill buying something in the state. We’re so conditioned to paying sales tax that it’s a kick not to.
C’mon Down East.
Roger
Dan Flynn | Dec 14, 2007 | Reply
Jim – I’m going to have to read your blog more regularly. I used to post very frequently on PSB, but I tired of it after a while. It seemed like I was spitting into the wind. Many of us know what has to happen, but we are outnumbered by the liberals who want to continue and advance the socialist agenda.
I don’t want to sound too much like a raging right winger, but maybe I am. I just want a place where I can live my life, work hard, and be left alone. I don’t want someone else taking the vast majority of what I work hard to earn, and redistributing it to people who they think are more deserving than me.
I’m perfectly capable of doing this myself, and I do, to a much larger extent than anyone knows. And that’s the way it’s supposed to be.
The recent STAR “Tax Rebate” enraged me. It was blatent Marxism, veiled in no way. It was a simple redistribution of wealth, and it HAS to be illegal.
Do these words sound familiar?? — “That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”
Jim Willis | Dec 14, 2007 | Reply
Thanks for your comments Dan! Always great to have a new reader/commenter. I tell new people all opinions are welcome–especially those that disagree with me.
I believe you and I are “on the same wavelength.” Government should be small and serve its originally intended purposes. Socialism seems to be fully ingrained in New York. I don’t think you (or I) are raging right wingers at all. I think we’re clear-thinking and logical. As you’ll notice in my most recent post (dated 12/13), the other side can’t defend their positions–so they resort to name-calling and personal slanders.
I too have felt your despair! Seems like we are so outnumbered by the socialists/leftists that all hope is lost. But…chin up! I’m trying to provide one outpost where clear thinking and truth are spoken. There are others around here too (see The Catskill Commentator and The Monday Nut). I will NOT let the leftists have the media all to themselves.
Thanks for commenting, and hope to “read” you more!
- Jim