THE "TEA BAGGERS" & THE GOPīS CLAIM THAT "HEALTH CARE IS TOO EXPENSIVE" IS BASELESS
Gary Ater
November 11, 2009
"Tea Party" demonstrators in Washington DC
Every major industrialized nation in the world, except the United States, currently has comprehensive health care for all of their citizens. If it was as impossible as the Republicans and the "Tea Baggers" say, how are these countries able to offer this service to every citizen? As I had stated in a previous column, when citizens of France, Germany and Canada were interviewed, over 97% say they love their health care coverage and when asked, they say the current American system is "useless and stupid". And they are correct.
As to the negative comment that it is "too expensive", anyone with a basic knowledge of Economics 101 and an understanding of how taxes and comprehensive health care function today, can see that comment is not supported by the facts.
The reality is that the nonpartisan Urban-Brookings Joint Tax Policy Center has been saying since 2007 that if the Bush tax cuts for those making over $250,000, (after taxes),were to expire, that alone would be worth about $150 Billion a year starting in 2012. That amount on its own would cover the necessary subsidies for implementing universal health care in America.
By getting rid of the Bush tax cuts, the wealthiest 1% of Americans would have their after-tax incomes reduced only by only 4.5%. Even with this loss, the wealthiest 1% of Americans would still be making millions more than they would have made 30 years go.
As an example, in order to see what that means for todayīs wealthy compared to the taxes paid by those same individuals in the past, letīs look at the tax rates of today compared to those of 1979.
THREE TOP US TAX RATES:
2008:
Top Tax on Earned Income: 35%
Top Tax on Long-Term Capital Gains: 15%
Top Tax on Corporate Profits: 35%
1979:
Top Tax on Earned Income: 70%
Top Tax on Long-Term Capital Gains: 28%
Top Tax on Corporate Profits: 48%
Looks to me like the wealthiest Americans are doing pretty well today.
Here is also a comparison of the top "effective tax rates on earned income" of the United States compared to some examples of other industrialized nations:
Earned Income Effective Tax Rates:
>>> United States: 35%
>>> Great Britain: 48%
>>> France: 60%
All of the large industrial nations have higher effective taxes than the effective rates in the United States.
And in Great Britain, "capital gains" are taxed as ordinary income at 40%, versus only 15% in the US.
If you think taxing the rich another 4.5% is still too high, please note that in the 1950īs, under the Republican President Eisenhower, the tax rate on the wealthiest Americans was at 90%.
Therefore, as one can see, to let the Bush tax cuts expire would be substantially less detrimental to Americas very rich when compared to taking them back to what their tax liability was in the late 1970īs or especially the 1950īs.
Now, as we are also all aware, getting rid of the Bushīs tax cuts is not all that is needed for covering the total cost of providing comprehensive universal health care.
Another way for dealing with the needed health care financing would be to close some of the current loopholes that allowed Wall Street and the banks to get into the financial debacle that occurred late last year.
The first loopholes that I would target are those for the dreaded hedge-funds. Due to some of the past Republican fiscal tax mismanagement, they passed laws that allowed hedge-fund managers to classify their earnings as "capital gains". These earnings are only taxed at 15%, rather than the normal 35%. In just making this change would result in $50 Billion more in taxes every year.
The other area that needs work are the massive subsidies that the previous Republican Congresses passed for supporting the private health care providers. These additional subsidies are solely for the private companies to offer virtually the same coverage that regular Medicare already offers. Today, the US government pays these private corporations 14% more revenue for providing regular Medicare type health coverage, but they also include some small extras like a gym membership, or a new pair of glasses every two years plus some free over-the-counter drugs. These subsidies now cost the US taxpayers $50 Billion every year.
The latest House of Representatives health care bill proposal would stop these 14% additional subsidies. That is why their bill, along with the other tax, loophole changes and stopping these subsidies shows that the health care coverage would be paid for and budget neutral.
Yes Virginia, all Americans can have health care coverage, similar to the rest of the modern world, and it can be done in a fiscally responsible manner.
The "Tea Baggers" and the GOP can howl at the moon, shake their disgusting "Hitler and Holocaust" signs and make all the noise that they want on "FOX Noise". But yes, America can afford comprehensive health care for all.
Copyright: G.Ater 2009
Follow me on Twitter: gater01
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