LETTER TO THE EDITOR: Kelly's economic argument based on 'sugar daddy' theory

Tuesday, December 3, 2013 | 4:42 p.m. CST; updated 5:32 p.m. CST, Tuesday, December 3, 2013

In his Nov. 26 editorialChris Kelly states, “The federal government will pay 100 percent of the Medicaid cost through 2016.” The unspoken premise is that expansion costs are free for Missouri.   

Breaking news: 100 percent of the cost of Medicaid expansion comes from Missouri taxpayers. Every worker who pays federal income tax will help pay for this program.  Look at your pay stub. If you see a deduction for federal income tax, then you will be paying for Rep. Kelly’s pipe dream of free Medicaid expansion. 

But wait, there is more. The state of Missouri also bears a portion of the costs. The state covers the cost of administering the program. Plus, the state of Missouri pays a percentage of the program cost. The amount is arbitrary and could change on a whim, just like the Obamacare mandate deadlines. Currently, state taxpayers cover about 43 percent of Medicaid while federal taxpayers pay the remainder. 

Back to your pay stub: Do you see a deduction for Missouri state income tax and federal income tax?  If so, then Rep. Kelly is volunteering you to pay both portions of the cost of Medicaid expansion.

The federal government is not a sugar daddy. Rep. Kelly thinks it is.

The federal government is a group of Washington, D.C., lawmakers who borrow 46 cents of every dollar they spend. Our federal politicians raided the Medicare and Social Security funds to make it appear they balanced the budget in the 1990s. Now Social Security, Medicare, and the federal government are all bankrupt, but they want us to trust them to expand Medicaid?

The sugar daddy economic theory is that the federal government will pay and it won’t cost you or me anything. Rep. Kelly has fallen for one of the classic blunders of deception.  

The most famous is “Never get involved in a land war in Asia,” but only slightly less famous is “Never use the Modern Greek Political system as your mentoring guide.”

Under Rep. Kelly’s proposed expansion of Medicaid, the likely outcomes are less money for Missouri roads and schools plus higher state and federal taxes for all of us.

Just say "no" to Medicaid expansion in 2014.

Paul Hamby is a 1985 graduate of MU. He owns an agriculture supply business in Maysville.

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