Moreover, he warns, some businesses, rather than pay an extra 6% tax, will move work in-house or out of state, hurting local service providers.

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By contrast, Germany and the Netherlands actively encourage those above a certain income bracket to opt out of state-financing arrangements, to take pressure off the public service.

ECONOMIST: Health

On an out-of-town trip Carlsbad state senator Joseph Gant Jr. read a wire- service story -- by chance -- about the Lyons fiasco and got on the telephone to other Carlsbad influentials.

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To bolster his contrarian argument, he points out that an officially appointed committee of experts has just recommended that his state scrap the fee-for-service model of reimbursement, which many economists believe is at the heart of America's health-inflation problem.

ECONOMIST: Health reform