Sept 20, 2009, on "This Week," George Stephanopoulos and President Obama have a colorful discussion over Obama's health care reform proposal. I have typed a transcript below for my international readers who need to translate and for those of you who are unable to watch the video.
George: Probably the most definitive promise you made in the campaign is that no one in the middle class would get a tax increase on your watch. Yet, this week Senator Rockefeller, several other democrats say that this bill by Senator Baucus is a big middle class tax increase. Do you agree and does that mean that you can't sign it.
Pres Obama: Well I don't agree. I think that what they were referring to and I haven't looked at the ?. I think they were concerned about whether or not this was actually affordable. If you're saying to people you have to get health insurance but they can't actually afford it and they have to pay a penalty if they don't get it. Then that's a pretty big burden on middle class families. That's a concern I share making sure that this is affordable. But the first thing we got to understand is you got was is effectively a tax increase taking place right now. Kaiser family foundation report just came out last week. Healthcare premiums went up 5 1/2% last year at a time when the rest of the economy inflation was actually negative. So that is a huge bite out of people's pockets and part of what I've been trying to say throughout this campaign this effort to get healthcare done is that if we don't do anything guaranteed Americans cost are going to go up, more people are going to lose healthcare coverage, the insurance companies are going to continue to prevent people from getting it for preexisting conditions. Those are all burdens on people who have health insurance right now.
And so just to close the loop on this. The principles I put forward, very clearly when I spoke to the joint session of congress is that we're going to make sure that #1 if you don't have health insurance, your going to be able to get affordable health insurance #2 if you have health insurance, we're going to have insurance reforms that give you more security, you know what your going to get. You know that if you're paying your premiums you actually going to have coverage if you're going to get sick. #3 it's going to be deficit neutral, it's not going to add a dime to the deficit now or in the future. #4 it's going to start driving down our cost over the long term.
Now 80% of what I'd like to see is actually already in all the various bills already in congress. That last 20% is tough because we got to figure out making sure that we are paying for it properly, making sure that it really is relief for the families that don't have health insurance, making sure that all the vaious details that are out there line up. That's going to take some time but I think that the effort by the senate finance committee is a serious strong effort to move an agenda forward. We've seen some positive signs from people who might have been otherwise a little bit shaky on healthcare including republican Olympia Snowe. Hasn't signed on but it's a legitimate effort to try to solve the problem. What I want to see is that we just keep on working on it over the next several weeks.
George: How about a matter of first principles. You mentioned these premium increases. But they are not happening as a result of a decision by the government. You were against the individual mandate during the campaign. Under this mandate, the government is forcing people to spend money and fining you if you don't. How is that not a tax?
Pres Obama: Well hold on a second George, here's what's happening you and I are both paying 900 bucks on average our families in higher premiums because of uncompensated care. Now what I've said is that if you can't afford health insurance, you certainly shouldn't be punished for that that's just piling on. If on the other hand we're givin tax credits, we've set up an exchange, you are now part of a big pool, we've driven down the cost, we've done everything we can and you actually can afford health insurance but you just decided you know what I'm going to take my chances and then you get hit by a bus and you and I have to pay for the emergency room.
George: That may be but it's still a tax increase.
Pres Obama: No no no that's not true George. For us to say that you've got to take a responsibility to get health insurance is absolutely not a tax increase. What it's saying is that is that we're not going to have other people carrying your burdens for you. Anymore than the fact that right now everybody in America just about has to get auto insurance. Nobody considers that a tax increase. People say to themselves that is a fair way to make sure that if you hit my car that I'm not covering all the costs.
George: But it may be fair, it may be good public policy.
Pres Obama: No but George you can't make up that language and call that a tax increase. If I say that right now your premiums are going to be going up by 5 or 8 or 10% next year and you say well that's not a tax increase. But on the other hand if I say that I don't want to have to pay for you not carrying coverage even after I give you tax credits that make it affordable.
George: I don't think I'm making it up. Merriam Webster's dictionary, "Tax: A charge usually of money imposed by authority on persons or property for public purposes."
Pres Obama: George the fact that you looked up Merriam's dictionary that the definition of tax increase indicates to me that you're stretching a little bit right now. Otherwise you wouldn't have gone to the dicationary to check on the definition.
George: No I wanted to check for myself. But your critics say it is a tax increase.
Pres Obama: My critics say everything's a tax increase. My critics say that I'm taking over every sector of the economy. You know that. Look we can have a legitimate debate about whether or not we're going to have an individual mandate or not. But...
George: But you reject that it's a tax increase?
Pres Obama: I absolutely reject that notion.
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