How can the United States government afford to fund a universal health care plan?

Question

Some United States presidential candidates are promoting a universal health care plan. When the social security system is going bankrupt and the Veteran's Administration Health System is a debacle and the United States is borrowing enormous sums of money from communist nations, how can the United States afford to fund a universal health care system. And will that system be as corrupt and bankrupt as other government agencies?

If we increase the corporation tax more companies will go overseas. Currently United States citizens pay over 50% of their income in taxes if you add up all the hidden taxes such as utilities tax, food tax, property tax, gasoline tax, etc. to FICA and social security tax. And can the government run a health care system any better than it has run the VA or social security or the public school system, AMTRAK, the USPS, etc.

Answer 1

You really didn't expect a Universal health care proponent,

To be able to tell you, how such a system could be funded, did you ?

I have yet to find a single person in favor of Universal Health Care, who can tell me how much it would cost or how it could be funded.

But since you ask, i'll answer your question.

Universial health care would cost between 1 trillion and 1.5 trillion dollars a year.

The Federal government currently spends about 580 billion per year on medicial care.

So they would need to raise an additional 420 billion to 920 billion a year to fund Universial health care.

Personal and corporate income tax's generated 1.4 trillion in tax revenue in 2006.

So we would be looking at increasing those tax's from 30% to 65% to fund Universial health care.

Another alternative, is to add a new payroll tax of approx 7.5%, this would raise an estimated 420 billion a year.

If treated like the SS payroll tax and matched by the employer, then it would raise 840 billion a year.

But that would mean business, had to pay 15% payroll tax, before any corporate income tax was paid and that individuals would pay 15% payroll tax also, before income tax's are paid.

I know for myself, that paying an additional 7.5% payroll tax, would mean I was being taxed, 8 times what im currently paying for my share of my health insurance.

Not a good thing.

Things not even mentioned by universial health care proponets.

Who would own the hospitals, the clinics, the labs ??

If the government owned them, that means the government would have to buy them from the current owners, where would that money come from ?

That could add up to several trillion dollars.

So far the debate has centered around, should we have such a system.

But no one is talking about, if we could actually afford such a system, what it would entail, how we would go about changing into it.

Only when those questions are answered, can we make an informed decision, on whether universial health care is right for our country.

Answer 2

It can't and it shouldn't. Private health care is the best solution for 80% of the public. The other 20% need aid but not at the cost of ruining the best system in the world.
Countries with Universal Health care suffer from exorbitant taxes and rationing of health services.
If something is "free", there will be intolerable waste. Health care is expensive enough with people having incentives to use the system wisely. Anything else would be crazy.

Answer 3

They can't. Even if they up the taxes to 40% on all incomes, they still would not be able to afford it! But the majority of the Presidential candidates don't care that they won't be able to afford it. They are trying to win votes - and promising free stuff is a good way of securing votes!

EDIT - sorry, they would be able to afford it if the upped the taxes that much - but it is guaranteed they would find more uses for the money, and in the end, government will still be broke. And the peopole will not be happy.

Answer 4

A simple answer is that the national health care system could be funded with a national sales tax or a similar system to now where people pay premiums to an insurer. The US is borrowing tremendous amounts of money to pay for the Iraq war and other frivolous spending, so the whole plan is unrealistic. Bush is spending like a soldier on shore leave.

Answer 5

The same way any government funds any program, by raising taxes or contributing to higher inflation.

Answer 6

Simple. Stop wasteful spending elsewhere. I am not for it, but that would do it. And take the tax cuts back from corporations.

Answer 7

With all the money going into private insurance premiums we could fund the best universal heath care system in the world.

We never seem to have a problem coming up with money to kill people in other countries. It shouldn't be so hard to make ourselves heathly.

Answer 8

The only way we can "afford" it is by raising taxes.

Answer 9

Add on another "sin" tax.

Answer 10

Quick answer.

It can't.