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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Road Walker who wrote (303223)9/15/2006 2:24:15 PM
From: TimF  Respond to of 1573215
 
The costs of the taxes paid by private insurers are part of the costs of private insurers but not part of the cost of the feds. You have an additional cost that gets counted for the private sector but is in fact imposed by the states and the feds.

As for the high salaries they are a cost that the private companies impose on themselves. The fact that fed salaries for upper management are lower than private sector salaries for upper management is a real cost advantage for them (but its already captured in the stats so you don't have to make any extra adjustment for it).

And its not just that the private sector is required to pay taxes, its also that the public sector gets its funding from taxes. The IRS budget to administer taxes doesn't get counted as part of the cost for the VA to provide medical care but a portion of it rightfully should. The billing costs for the private sector are counted in their totals.

re :rewriting sentence

There are some things that the private sector may be effectively unable to provide.

Its hard to think of any broad areas where the private sector could provide a good or service but where the feds almost certainly could do it cheaper and better. Cheaper might be possible at the expense of speed, quality, or service.