Posts: 9,400
Registered: ‎02-06-2014

paying for medicare for all

[ Edited ]

The last time America's Most Popular Politician proposed it in 2013, it had a $1.4T price tag.


So let's say $2T now.


Total personal income (wages plus enterprises) is approximately $16T, so if you cap a payroll tax at $100K let's say $10T in play, a 10% payroll tax (50% to employer, fully deductible to proprietors) gets you $1T.


Probably shouldn't cut the corporate rate much and probably nothing net of loopholes since they would be among the larger beneficiaries of reductions in both direct and administrative costs.


Total Medicaid spending is $575 billion so that gets you 3/4 of the way there. However part of that is the state share, so you have to figure that out- I'd say a state subsidy to pay for those who make less than the per capita cost.*and**.


Then you just have to find another piddly $400 B. I imagine the Kraft Estate Tax Plan could gather most of that.***


I'd tax capital gains at the ordinary income rate minus inflation indexing. That would probably top it off.


Probably the #1 thing we could do for US competitiveness.


*That would be opposed by low income states, which also tend to have not joined Medicaid expansion. But they would also enjoy a substantial degree of economic boost by bringing a lot of jobs to their states, and netted out, they'd be getting more per capita from the system than high income states.


**not true, as some 40% of Medicaid spending is for LTC, so cut a couple hundred $B off that.


***I'd also enact the Hardnox Plan and push the 0 bracket on C Corps up to $50K, probably 10% to $100K- thus shielding small entrepreneurs from part of the burden while they're in a capital retention phase. That would also imply taxing dividends at the ordinary income rate.