Regardless of what side you’re on, Democrat, Republican, or somewhere in the middle, there’s one truth we’ve seen during this campaign season. That truth is that the Democrats plan on spending A LOT of money. They don’t seem really good at really talking about the issues. They just promise to throw a ton of money at it.
And when they’re asked about who will pay for said program, they all say the same thing, “the rich will be taxes their fair share!” Most of them promise to wipe out the $1.53 trillion student loan debt and make college free. That’s massively expensive. Again, their response is, “tax the rich!” But then we get to healthcare.
Most of the Democrat candidates support some type of Medicare-for-All plan. It’s a bold plan they believe Americans deserve. We all deserve great healthcare, but what is the cost of providing it 100% free for all citizens? Well, we’ve already published a story on that. In case you missed it, here’s the dish. Warren’s plan alone would cost an ADDITIONAL $3 trillion in tax revenue. That’s the amount of tax revenue the government currently brings in, so you’d have to double it.
So, someone needs to say it. Are we fine bankrupting thousands of businesses? If not, then we’re saying we would have to double the federal tax rate. You could accuse this writer (and many economists) of sticking up for the rich, but the math simply doesn’t add up. You could tax every single earner who makes more than $408,000 per year 100% and STILL fall well short.
What New Democrat Taxes Would Do
So, obviously, demanding the rich to pay their fair share would not work. You would be stealing way more than what is fair. Not only would such a tax bankrupt businesses and whole industries, it would force companies to leave the country. If they couldn’t leave, they would ultimately shut down and stop working. Who would work if you taxed them so much? Who would want to do business in America at that point?
This is exactly why Warren nor Sanders have any answers for how to pay for their promises. They refuse to admit that new taxes would have to be placed on the middle and lower classes. Of course, they then say the increased taxes would offset not having to pay for health insurance. That’s not a fair trade off either, nor is it a good explanation.
In order to raise $3 trillion to pay for Medicare-for-All, the national sales tax would have to be raised to 42%. If that happens, you won’t be bringing in the revenue you hoped. Why? Because it would utterly destroy consumer spending and the U.S. economy. It would create a 42% inflation of prices, impacting everyone.
If you don’t like this option, we could cut government spending by 80% to focus on healthcare. Even our annual defense budget couldn’t touch it. We could keep borrowing the money and quadruple the deficit. We could add a 25% income surtax on everyone. Either way you look at it, there’s absolutely NO WAY Medicare-for-All would work. It’s time to stop falling for the free stuff they throw out to win votes and demand more answers.