The Democrat led House Ways & Means Committee will this week hold a hearing on Medicare for All.
Under this plan, workers, families, and businesses both small and large will see higher taxes and less control over their lives. A single payer system eliminates choice, raises costs, and reduces access by allowing the government to control and ration care. The millions of Americans who currently enjoy their doctors and coverage won’t have a say in this radical overhaul of the system.
According to the Mercatus Center, the plan would cost $32 trillion over the next decade. This would increase federal spending by a staggering 60% in that time frame. That money has to come from somewhere, and unsurprisingly, it will be American taxpayers footing the bill.
The plan has faced two previous congressional hearings in the past month or so, but this will be a heightened level of scrutiny for the proposed government takeover. However, this latest hearing is notable as the Ways & Means Committee has policy making jurisdiction over healthcare and taxation. The hearing should be a chance for Americans to understand the real costs of Medicare for All, seeing as they haven’t gotten many answers thus far.
Democrat supporters in the House have refused to explain how they’ll pay for their plan, let alone tell the American people what kind of tax hikes they can expect. However, self-avowed socialist Senator Bernie Sanders (I-Vt.) has released a list of tax increase “options.”
In all, Sanders’ proposals would lead to $14.3 trillion dollars in higher taxes over the next decade, according to an Americans for Tax Reform analysis. It should be noted that this tax hike wouldn’t even cover half of the overall cost of Medicare for All. However, this would still mean drastically higher taxes on American families and businesses:
A new 4% payroll tax on workers would raise taxes by $3.9 trillion over the next ten years.
The proposal also includes a 7.5% payroll tax on employers, which would cost businesses $3.5 trillion over the decade.
The law would eliminate employer-based health insurance, which currently covers about 158 million Americans. This would raise taxes on businesses by $3 trillion by getting rid of the healthcare deduction utilized by employers.
The proposal would eliminate Health Savings Accounts (HSA’s), utilized by 25 million American families. “Cafeteria plans” and the medical expenses deduction would also be repealed. In all, these tax increases are a $4.2 trillion tax hike.
Increase the top marginal tax rate for individuals and the tax rate for capital gains above $10 million to 70%. The Tax Foundation estimates that increasing these rates would raise $51 billion over the decade. However, due to how much these rates would discourage investment and slow economic growth, it would actually be a net loss of $63.5 billion to the federal budget.
The proposal raises the top death tax rate to a whopping 77%. Currently, the tax kicks in at inheritances over $11 million with a rate of 40%. Sanders’ plan would drop the threshold to any inheritance worth $3.5 million with a starting rate of 45%. This would raise taxes on families by $315 billion over the next ten years.
The plan also implements an annual “wealth tax” on American taxpayers. This would force Americans to pay an annual 1% tax on assets worth at least $21 million, and would increase taxes by $1.3 trillion.
An additional $800 billion in new taxes is proposed by setting a “bank tax” on financial institutions throughout the country.
The self-employment tax would be broadened, hitting small businesses with an additional $247 billion over the decade.
Medicare for All would have drastic consequences for American families. The proposal would outlaw private health insurance, thus removing the competition and innovation of the free market. It would eliminate choice for Americans, especially for those who want to keep their doctors. Like the single payer systems of Canada and the UK, it would lengthen wait times and reduce access to care.
Most of all, Medicare for All would immediately raise taxes on the American people by unprecedented rates.
Americans are entitled to answers from the people who want to raise taxes and hand over complete control of their healthcare to the government. This hearing ought to deliver those answers.