Presidential candidates like Bernie Sanders and Elizabeth Warren are vowing to abolish private health insurance if elected president and have all Americans get their coverage through the federal government.
Projections suggest such a plan would cost $32 trillion over the first ten years. Warren plans to pay for that with a two percent wealth tax on the super rich. Sanders admits he would raise taxes on the upper class and the middle class, but both insist their plans will be a net positive financially for American families.
But is that true? Would the tax plans raise even close to enough revenue to pay for this new entitlement? National Taxpayers Union President Pete Sepp says they won’t and so does the bipartisan Committee for a Responsible Budget.
The CFRB says to make ends meet, lawmakers would need to enact a 42 value-added tax on consumers, a 32 percent payroll tax split between employers and employees, a 25 percent income tax surcharge on all Americans, or require everyone to pay roughly $7,500 to buy into the federal health care program.
In this podcast, Sepp details the devastating effect such tax increases would have on American families and the U.S. economy. He also addresses the possibility that the government will just let our debt pile up even higher and faster.