Yes, it can get worse, much worse.
Washington’s deficit spending is fueling punitive inflation, but self-proclaimed “progressives” in Congress remain fully committed to further increasing federal spending and debt.
Vermont Sen. Bernie Sanders recently chaired a Senate Budget Committee hearing on his Medicare for All proposal. Like its earlier version, the Senate bill will eliminate almost all private and employer-sponsored health insurance, eliminate Medicaid and even Medicare itself, and establish a single-payer national health insurance system.
Most Democrats in the House of Representatives are sponsors of such legislation. Their main proposal is their legislation, which will change the coverage of 90 percent of the population, will guarantee a higher quality of care for all at lower national and personal costs.
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Sanders ‘bill, like the House of Representatives’ accompanying bill, is particularly remarkable not for what it contains, but for what it lacks: key funding provisions.
Without specifying the type or amount of taxes needed to fund the program, neither the Congressional Budget Office nor independent economists can calculate and provide anything close to an accurate estimate of its impact on the federal budget, the economy, or taxpayers. The economic effect is left mostly to trained guesses.
There are educated fortune tellers. Testifying before the Senate Budget Committee, CBO Director Philip Swagl said the agency had not analyzed Sanders’ bill, but had previously analyzed five versions of the single-payer universal coverage program.
Replacing current programs with any of the five single payer options, according to a CBO analysis, will require huge taxpayer subsidies: between $ 1.5 trillion and $ 3 trillion in 2030 alone. In addition, new demand would outpace the limited supply of medical services, which will lead to “congestion” in the system and “delays and missed care”. I wonder what that looks like? See Great Britain and Canada.
Americans will also remain poorer. Whether the state health program is funded by income tax or payroll tax, according to the CBO, America’s gross domestic product, the nation’s total production of goods and services, will be “approximately 1 to 10 percent lower by 2030. “Than under current law.
Why? The CBO says: “The net decline in GDP will be mainly due to the effects of increased taxes on labor and capital income. Taxes on labor income reduce wages after tax, so they reduce the return on each additional hour worked. … Therefore, according to the CBO’s assessment, higher taxes on labor reduce the number of hours worked in the economy. Higher taxes on capital income, such as dividends and capital gains, lower the average rate of return after tax on private assets (or return on investment), which reduces the incentive to save and invest and leads to a reduction in the capital fund. These effects in turn lead to lower incomes. “
Printing money to cover expenses is a dead end. The CBO says: “The continued funding of any of the CBO single-payer systems analyzed by increased borrowing – without a corresponding increase in revenue or a reduction in other costs at some point in the future – would be unsustainable.
And forget the “soaking of the rich.” Even they are not rich enough to cover the balloon bills accumulated under Medicare for All.
Witnessing the same Senate hearing, Dr. Charles Blahaus, a former Medicare trustee and Mercatus Center researcher, said that providing a level of Medicare for All benefits and services would cost between 32.6 trillion and $ 38.8 trillion, or about $ 120,000 per person, above and beyond any administrative cost-cutting measures. Even with the lower estimate, Blahaus noted, “doubling all currently projected federal personal income taxes and corporate taxes would be insufficient to fund the added federal cost of implementing M4A” (“Medicare for All”).
However, the “progressives” in Congress assure us that individuals and families – who no longer pay private insurance premiums and deductions – will still come forward with a tax-funded state health program.
Don’t bet on that. Looking at previous Medicare for All legislation, Heritage Foundation analysts have concluded that a single payer program will require a tax of 21.2 percent of profits (in addition to current federal, state and local taxes), which hits almost two-thirds of American households, which means that 73.5% of Americans would pay more for health care than today.
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While acknowledging the political difficulty of eliminating almost all existing private and public health insurance and replacing the centralized single-payer program, some lawmakers, including Sanders, are proposing a diluted version that would reduce the normal eligibility age from 65 to 60. Implementing this policy in 2026, the CBO and the Joint Tax Committee estimate that in five years, 7.3 million people – about twice the population of Oklahoma – will enroll in the financially constrained Medicare program.
Of those 7.3 million, CBO and JCT estimate that otherwise 4.8 million would have private, employer-sponsored health insurance. In short, the policy would be to shift existing coverage and private payment at the expense of the taxpayer to this segment of the population, while adding an additional $ 155 billion (about $ 480 per person in the United States) to the federal deficit.
Washington’s frantic spending is already costly. Due to poor federal policy, ordinary Americans are suffering from rising inflation. They are threatened by an impending recession and are witnessing a constant devaluation of their savings and retirement income. Over the horizon, the financial future of Americans is already clouded by accumulating deficits and dangerous debt, which now exceeds $ 30.4 trillion – about $ 94,000 per person in the country.
Ignore the stupid promises of “free care” for everyone. If the “progressives” in Congress ever manage to take over American health care – almost a fifth of the American economy – our personal and public finances, no matter how bad they are at the moment, will get much, much worse.