Posted by 01 November 2019
Both Senator Elizabeth Warren and Senator Bernie Sanders have embraced Medicare-for-All during their campaign for the Democratic presidential nomination. But while Sen. Sanders has been blunt that his plan would require new taxes, Sen. Warren has been less clear about how she would pay for this new federal plan. Today she added clarity to her proposal by outlining a plan to fund her expansion of government health care.
Under Sen. Warren’s proposal, here is how she would cover the costs of Medicare-for-all:
- Tax businesses the amount they are currently paying for their part of employer-sponsored health insurance.
- Increase efforts to stop tax evasion and avoidance.
- Impose a new tax on financial transactions.
- Impose a new tax on larger banks.
- Modify the tax deduction for corporate depreciation.
- Impose a new tax on companies that have presences in other countries.
- Impose a new tax on taxpayers with assets over $50 million.
- Impose capital gains on a yearly basis instead of when the gains are realized through sales.
- Reform immigration laws to allow more immigrants to come to the U.S., which Warren says will result in more tax revenue.
- Cut defense spending.
There is some dispute over how much federal spending would have to rise with Medicare-for-All. Some estimates put it at $34 trillion over 10 years. That is roughly the amount of all the current federal entitlement programs combined.
Senators Sanders and Warren say that Medicare-for-All will not be new spending, but will be a shift in spending. They say that the money currently being spent in the private and government health care sectors, on things such as private insurance or Medicaid, would be replaced by Medicare-for-All spending. In fact, in her plan, Sen. Warren says that companies would ultimately spend less via her new health care tax than they spend paying private insurance premiums.
Critics counter that this would be a huge expansion of federal spending that will likely be much more expensive than projected. They also note that this would be a massive re-alignment of how Americans receive their health care, with private insurance being outlawed in most instances.
Do you support new taxes on businesses and high-income taxpayers to pay for Medicare-for-All?