Supporters of Medicare for All, the huge, single-payer government health plan backed by Bernie Sanders, Elizabeth Warren and several other Democratic presidential candidates, say it’s time to think big and move to a health plan that covers everyone. Getting there is a bit tricky, however. A variety of analyses estimate that Medicare for All would require at least $3 trillion in new spending. That’s about as much tax revenue as the government brings in now. So if paid for through new taxes, federal taxation would have to roughly double.
If you’re a Democrat who supports ‘Medicare for All’ pick your poison. You can ruin your political career and immolate your party by imposing a ruinous new sales tax, a gargantuan income tax hike or a surtax on corporate income that would wreck thousands of businesses.
Nearly all the Democratic candidates for president in 2020 have adopted the strategy of promising everything to everyone. Are you a student? Free college! Do you have medical needs? Free Medicare! Are you a transgender? Free pronouns! And the list goes on and on ad nauseam. The part that they have left out of every, single Democratic debate, though, is how to pay for all this free stuff. One of those ways is a 42% sales tax, and the other options are even worse.
Health care is not a human right, it is a for profit medical service available for purchase, the idea of it being free is simply preposterous. If you are hungry, no restaurant is required to feed you for free. Democrats like to make everything a human right which only serves to confuse people as to what human rights really are. The only type of countries that can provide free stuff for people are Socialist countries and guess what? They run out of that free stuff pretty quick. Just ask Venezuela. Things are so bad there they use their paper currency as toilet paper. If that sounds appealing to you, vote Democratic in 2020, because that’s what you’ll get.
Why Medicare For All could come with a 42% national sales tax
FROM YAHOO FINANCE: Supporters of Medicare for All, the huge, single-payer government health plan backed by Bernie Sanders, Elizabeth Warren and several other Democratic presidential candidates, say it’s time to think big and move to a health plan that covers everyone. Getting there is a bit tricky, however. A variety of analyses estimate that Medicare for All would require at least $3 trillion in new spending. That’s about as much tax revenue as the government brings in now. So if paid for through new taxes, federal taxation would have to roughly double.
The Committee for a Responsible Federal Budget (CRFB) has done voters a favor by spelling out what kinds of new taxes it would take to come up with that much money. Warren justifies many of her programs by saying all it would take is “two cents” from the wealthy. That’s a reference to her 2% wealth tax on ultra-millionaires. But Medicare for All would be so expensive that if you taxed top earners at 100%—that’s right, if you took all the income of couples earning more than $408,000 per year—you’d still fall far short. And everybody getting taxed at 100% would obviously stop working.
Okay, that won’t do it. So what will? CRFB outlined a variety of options. A 42% national sales tax (known as a valued-added tax) would generate about $3 trillion in revenue. But it would destroy the consumer spending that’s the backbone of the U.S. economy. A tax of that magnitude would be like 42% inflation, wrecking consumer budgets and the many companies that depend on them, from Walmart and Amazon to your local car dealer.
OTHER OPTIONS INCLUDE A 32% PAYROLL TAX SPLIT BETWEEN EMPLOYERS AND WORKERS OR A 25% INCOME SURTAX ON EVERYBODY. OR, THE GOVERNMENT COULD CUT 80% OF SPENDING ON EVERYTHING BUT HEALTH CARE, WHICH WOULD INCLUDE HIGHWAYS, AIRPORTS AND THE PENTAGON. OR HERE’S A GOOD ONE: JUST BORROW THE MONEY AND QUADRUPLE WASHINGTON’S ANNUAL DEFICITS.
The best idea might be charging every enrollee in the new program $7,500 per year, so they’d be paying directly for the coverage they’re getting. Some people pay more than that now for health care, by purchasing insurance outright or sacrificing pay raises in exchange for employer coverage. It would still be a nifty trick to propose that to voters.
The upside to these impossibly draconian scenarios is that nobody would pay anything for health care, except in the $7,500 example. And it’s possible that Medicare for All would cover health care for more people at a lower total cost than we spend now, meaning the average cost per person would go down. The problem is transitioning from what we have now to whatever Medicare for all would be. And it’s a giant problem, like crossing the Mississippi River without a bridge or a boat. The other side might look great but you’ll die before you get there.
Warren, Sanders and others tout the virtues of this magical health care program without explaining what it would cost. Sanders has at least suggested some possible ways to pay for it, including premiums paid by enrollees, a wealth tax on millionaires and income tax rates as high as 52%. Warren has been cagier, saying only that under her plan “costs” would go down for middle-class families. Under pressure to explain, Warren has pledged to come up with a financing plan soon. Now, maybe she doesn’t have to. READ MORE
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