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German government raising taxes to fill its healthcare deficit

A peek into our future:

Chancellor Angela Merkel’s coalition backed higher health-insurance premiums, a move some critics from her own party said will fail to curb rising health-care costs and might undermine the German economic recovery.

Coalition leaders meeting in Berlin today agreed to raise health premiums to 15.5 percent of gross pay from 14.9 percent, Health Minister Philipp Roesler said. Employers will contribute 7.3 percent with 8.2 percent paid by employees.

“We’re including everybody, workers, employers and taxpayers,” Roesler said in a statement distributed to reporters in Berlin.

The measure is part of an overhaul of health care intended to plug an 11-billion euro ($13.8 billion) deficit in the public health-insurance system in 2011. It follows Cabinet agreement on June 29 to cuts in spending on drugs to reduce soaring costs to public health-insurance funds.

This is what happens when governments create massive entitlements designed to “benefit” the population–ineptitude, mismanagement and a complete waste of resources.

Eventually the bureaucracy becomes so big, it needs to be fed with the blood and sweat of the taxpayers, as politicians scramble to find more and more sources of revenue to plug the inevitable funding shortfalls, while praising the purported benefits to the people.

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