McCormack: S-chip Ahoy!

Supreme Court Justice Louis Brandeis wrote in 1932 that “a single courageous state may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.” On Tuesday, citizens in left-leaning Oregon blew up the state’s progressive experiment of giving government health insurance to families making three times the poverty level. The Wall Street Journal editorializes:

Oregon reproduced the current Schip fracas in D.C. on the state level – and the referendum took a major shellacking, with voters siding three to two against. Oregon’s expansion was almost identical to the one backed by Congressional Democrats, so let’s conduct a post-mortem, which may also be a portent. Like Beltway Democrats, Governor Ted Kulongoski and his legislature wanted to broaden eligibility for Oregon’s ‘Healthy Kids’ Schip program to 300 percent of the federal poverty level. They would also allow all families to opt in, regardless of income, though higher earners wouldn’t get subsidies. Again like Congress, Salem intended to pay for the expansion with cigarette taxes, which would increase to $2.02 from $1.18 a pack. That would be one of the highest state tobacco levies in the nation.

Governor Kulongoski said the vote failed because the “tobacco industry bought the election,” and, sure enough, the New York Times ran an editorial today titled: “Big Tobacco Defeats Sick Kids.” If the Times editorial writers read their own op-ed page, they would learn that a cigarette tax is a regressive tax paid by “relatively poor, politically immobilized people.” Perhaps a much more progressive way to fund S-chip expansion would be through a $10 tax on every half-caf caramel macchiato. We know that the New York Times is fearless enough to speak truth to the power of Big Tobacco, but would the newspaper of record have enough courage to stand up to Venti Coffee?

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