During tonight’s Presidential debate, several Democrat candidates including Elizabeth Warren were unable to answer whether they could pass socialized healthcare without tax increases on the middle class.
The fact is, there is no way to pay for Medicare for All without tax increases on the middle class.
The socialized healthcare plan proposed by Bernie Sanders includes a new, $3.9 trillion, 4 percent payroll tax on workers.
This tax kicks in for families earning $29,000 or more, far below former President Barack Obama’s definition of middle class of $250,000 in annual income.
This is likely the tip of the iceberg when it comes to tax increases on the middle class because the Sanders raises $14 trillion in new taxes, roughly 40 percent of the cost of his Medicare for All Plan, which would require $32 trillion and $36 trillion in higher taxes over the next decade.
It is also important to note that a significant portion of Sanders’ $14 trillion tax increase also relies on eliminating healthcare options for American families ($4.2 trillion ) and a 7 percent tax on employers large and small ($3.5 trillion).
Regardless, taxes on “the rich” will not come close to paying for Medicare for All.
For instance, a “wealth tax,” a financial transactions tax, a 10 percent surtax on “the wealthy,” a 70 percent top rate, and doubling the tax rate on capital gains would pay for roughly 20 percent of the cost of Medicare for All according to the best-case scenario estimates by the left.
It is also important to note that these estimates assume no negative economic feedback, no changes in behavior, and do not account for any revenue loss from the co-mingling of taxes:
- A wealth tax (2% annual tax on $50 million in wealth, 3% annual tax on $1 billion) – a $2.75 trillion tax increase
- A financial transactions tax (0.1 percent on every transaction) – a $777 billion tax increase
- A 10 percent surtax on the wealthy ($2.9 mil in income and above) — an $800 billion tax increase
- 70 percent top marginal income tax rate – a $353 billion tax increase
- Doubling tax rates on capital gains — a $1.5 trillion tax increase
Total: $6.17 trillion (19 percent to 21 percent of the $32 – $36 trillion cost of “Medicare For All.”)