The Fed's latest news has prompted another round of what-ifs.
Much attention has been paid to the so-called "fiscal cliff" set to occur on Jan. 1, rightly so. However, New Year's Day is also when many of the fees and penalties in the President's health care law will begin to take effect. One of them is a $63 charge every American will begin paying as a way to cover some of the increased costs associated with providing health insurance to those with pre- existing conditions.
For many, this new fee will be paid for by their employer. While that's good news for many American families, whose budgets are already stretched tightly, it is problematic for business of all sizes. For large businesses, this new fee could equal tens of millions of more dollars being shipped to Washington.
That is more money that cannot be used to hire, expand or make capital investments. For a business of 20, that's almost $1,300 headed out of their budget and into the federal bureaucracy next year.
All told, this new fee is projected to take in $25 billion over the next three years. The rules, regulations and fees in Obamacare are slotted to take in approximately $700 billion over the next 10 years. Unfortunately, what is not in the health care law is any type of reform that will actually lower health care costs. Instead, Washington will get even more money and American businesses and families will have to deal with having even less.
Starting next Congress I will be serving on the House Committee on the Budget, one of the most influential committees in Congress. The Budget Committee is tasked with developing a plan for how the federal government will set its spending priorities for the year.
For the past two years, the House has passed a budget that would cut spending and put our country on a sustainable fiscal path going forward. By contrast, the U.S. Senate has not passed a budget in over four years. I have no doubt the House will pass another responsible budget this year, and I look forward to assisting in its creation. My hope is that the Senate will finally follow our lead.
Budget Committee Chairman Paul Ryan is a master of the budget process and an innovative leader in the significant challenges we face in fixing America's broken finances. He understands how important it is to get spending under control and provide certainty to American businesses and working families.
As a businessman, I look forward to learning more about how the House develops its budget and to offering common sense solutions from the private sector on how we can begin to right our fiscal ship. I also will continue to serve on the House Committee on Financial Services, where I am currently the vice chairman of the Subcommittee on Financial Institutions and Consumer Credit.
U.S. Rep. Jim Renacci can be contacted via Facebook (facebook.com/ repjimrenacci) and Twitter (twitter.com/repjimrenacci) and at his Canton office at 330-489-4414 or his Washington office at 202-225- 3876.