53°F
weather icon Clear

VICTOR JOECKS: Democrats want welfare for the wealthy to end the shutdown

The Democrats’ shutdown tantrum is a de facto admission that Obamacare has failed.

The government shutdown has now entered its fourth week. The longest previous shutdown began in December 2018 and went into January. It lasted 35 days. There’s a real likelihood that this one breaks that record.

While Republicans control both houses, the continuing resolution needs 60 votes to break a filibuster in the Senate. House Republicans have passed a stopgap spending bill, but Senate Democrats have rejected it a dozen times. Unlike Sen. Catherine Cortez Masto, Sen. Jacky Rosen has repeatedly voted to keep the government closed.

Look at the political incentives. Senate Minority Leader Chuck Schumer is worried about a future primary challenge from leftist darling Rep. Alexandria Ocasio-Cortez. He didn’t like that the leftist base roasted him for agreeing to keep the government open in March. The shutdown may even help boost Democrat turnout in Virginia’s upcoming election.

Republicans rightly point out that they have voted to keep the government open. The shutdown has given President Donald Trump and his budget team greater ability to reshape government. They’ve laid off workers and paused billions in spending.

Despite this, the left wants Democrats to keep fighting Trump, even if it causes collateral damage.

“Shutdowns are terrible,” Democrat Whip Rep. Katherine Clark, D-Mass., said. “Of course there will be families that are going to suffer. We take that responsibility very seriously, but it is one of the few leverage times we have.”

Now, take a look at the policy for which Democrats are fighting — higher subsidies for Obamacare insurance plans. Without these subsidies, premiums will increase dramatically for some, especially early retirees who are well off.

Note the irony. Barack Obama once promised his signature health care proposal would “lower premiums by about an average of $2,500 per family, per year.”

That didn’t happen. Since Obamacare passed in 2010, the average cost for a family insurance plan has nearly doubled. It’s now $27,000 a year.

Instead of fixing Obamacare, Democrats want to hide its costs. Originally, the government offered tax credits on premiums to those earning between 100 percent and 400 percent of the poverty line. In 2021 and 2022, Democrats temporarily removed the income cap and reduced how much households pay for plans. Unsurprisingly, enrollment in the ACA marketplace has more than doubled compared with 2021. Those provisions expire at the end of the year.

CNBC recently profiled Bill and Shelly Gall of Idaho. They retired early and had a modified adjusted gross income of $136,000 last year. Without subsidies, their premiums would increase from $442 a month to almost $1,700. If that happens, they’ll have to travel less or pull from their retirement savings. Democrats want welfare for the wealthy.

Put all the pieces together. Democrats have shut down the government in a bid to boost the income of insurance companies by subsidizing high-income Americans. It would be better to repeal Obamacare and let market competition lower premiums for everyone.

Contact him at vjoecks@reviewjournal.com or 702-383-4698. Follow @victorjoecks on X.

MOST READ
Don't miss the big stories. Like us on Facebook.
THE LATEST
MORE STORIES