How will M4A be paid for? Apparently it’s a secret, you know, you have to pass it to find out.
The CRFB has estimated what it would take to pay for such an extensive program and it’s not pretty. Yes they are estimates, yes they are not 100% accurate, yes conditions will change, but the magnitude of funding M4A as it is proposed is accurate and Americans should understand that.
Take a look.
We find that Medicare for All could be financed with:
• A 32 percent payroll tax
• A 25 percent income surtax
• A 42 percent value-added tax (VAT)
• A mandatory public premium averaging $7,500 per capita – the equivalent of $12,000 per individual not otherwise on public insurance
• More than doubling all individual and corporate income tax rates
• An 80 percent reduction in non-health federal spending
• A 108 percent of Gross Domestic Product (GDP) increase in the national debt
• Impossibly high taxes on high earners, corporations, and the financial sector
• A combination of approaches
Each of these choices would have consequences for the distribution of income, growth in the economy, and ability to raise new revenue. Some of these consequences could be balanced against each other by adopting a combination approach that includes smaller versions of several of the options as well as additional policies.
Consequences could also be mitigated through aggressive efforts to lower per-person health care costs and/or by substantially scaling back the generosity or comprehensiveness of Medicare for All.