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For Immediate Release Rep. Pitts Votes Against Expanded Government Healthcare SCHIP bill raises taxes, heads down path to socialized healthcare Washington– Congressman Joe Pitts (PA-16) voted no today on H.R. 976, the reauthorization of the State Children’s Health Insurance Program (SCHIP). With the program in need of renewal, the Democrats used the opportunity to create a massive expansion in government run healthcare, broadening the scope of the program beyond its original purpose to provide healthcare for children whose parents cannot afford private health insurance. The bill will raise taxes to pay for a portion of the additional spending. The legislation faces a veto threat from the White House. Congressman Pitts’ statement follows: “SCHIP was created to cover children whose parents cannot afford to provide health insurance. The Democrats are attempting to use the program as a backdoor to government run socialized healthcare, and they are trying to raise taxes in order to do it.” Background: SCHIP was created in 1997 with bipartisan support. The program was originally meant to cover children whose parents made too much money to qualify for Medicaid, but not enough money to afford private health insurance. Through the program, the Federal Government provides funds for the states to administer their own individual programs. Each state can administer the program as it sees fit within the guidelines laid out by Congress. In order to meet their own requirements regarding spending legislation, the Democrats have engaged in budgetary gimmicks on H.R. 976. The program is extended out over 10 years, but the bulk of the funding is spent during the first five years. This allows the math to add up in order to pass budget requirements. However, in five years, Congress will either have to create another massive expansion of the program, or children will lose their coverage. Additionally, by increasing the tax on tobacco in order to pay for the expansion of the program, Democrats are using a declining revenue stream to pay for a growing program. Less people will smoke as taxes increase, representing a decrease in revenue, while states will be adding children to the program because they have incentives to do so. The bill also allows states to purposefully ignore various types of income in an effort to expand eligibility. For instance, New Jersey covers up to 350% of federal poverty line, over $70,000 for a family of four, by “disregarding” certain income. The non-partisan Congressional Budget Office estimates that as a result of the bill, 2 million children who currently have private health insurance will shift to government run healthcare.
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