Democratic presidential candidate Bernie Sanders has released his proposal for a government takeover of the American health care system, Americans for Tax Reform reported. The proposal, which Sanders calls “Medicare for All,” replaces private insurance with government as the single payer. Rather than including financing mechanisms in the legislation, Sanders released a set of tax hike options that would be paired with the proposal. These tax hikes would hit American families at every income level and businesses large and small. The proposal increases taxes by $16.2 trillion over the next decade, according to an estimate. This would pay for roughly half of the cost of single payer healthcare, which is estimated to cost between $32 trillion and $36 trillion. Here are a few excerpts of proposed tax hikes:
- A New, 4 Percent Employee Payroll Tax: Sanders would impose another 4 percent payroll tax on employees, which he calls an “income-based premium paid by employees.” According to Sen. Sanders’ estimates, this increases taxes on American families and individuals by $3.9 trillion.
- A New, 7 Percent Employer Payroll Tax: Sanders would impose another 7 percent payroll tax on employers, which he calls an “income-based premium paid by employers.” This is a $3.5 trillion tax increase over 10 years.
- 70 Percent Top Tax Bracket for Ordinary Income and Capital Gains Income: This would give America the highest income tax rate in the world. A top 70 percent rate for ordinary income and capital gains income above $10 million will raise $51.4 billion over a decade. After accounting for macroeconomic effects, the proposal would actually cost the government $63.5 billion because the proposal suppresses investment and economic growth.
- Wealth Tax: Sanders proposes an annual wealth tax of 1 percent kicking in above $21 million in assets. Sanders estimates the proposal will increase taxes by $1.3 trillion over 10 years.
- Bank Tax: Sanders proposes a tax on financial institutions totaling $800 billion over ten years.