Issues & Insights posted an article today about Elizabeth Warren’s healthcare plan for America.
These are some highlights from the article:
So Warren simply waves her magic wand and makes $14 trillion in costs disappear. And how does she cut Medicare for All’s price tag by 41%?
- impossibly deep cuts in drug prices,
- devastating cuts in payments to hospitals and doctors,
- and entirely unrealistic claims about overhead costs.
Even with Warren’s phony price tag of $20.5 trillion, the taxes required are truly astronomical. Warren says businesses would have to contribute $8.8 trillion in taxes to help finance Medicare for All. She says they should be grateful because under the current system they’ll spend $9 trillion on employee health benefits.
But she doesn’t actually know that businesses will spend $9 trillion on health care over the next decade. It’s just a guess. And not a very good one, since businesses are finding new and better ways every day to keep their health costs under control.
Her plan is to pay for healthcare by doing the following:
Even the supposed business savings are phony since Warren would massively raise corporate income taxes. In her plan, she announces that she would:
- repeal the Trump corporate tax cuts, reinstating the 35% tax rate that made U.S companies uncompetitive among industrialized nations,
- enforce a “country by country” minimum tax of 35%,
- and lengthen depreciation rules.
Combined, these and other new levies would raise corporate taxes by $2.9 trillion.And this doesn’t count the following:
- the $800 billion tax on financial transactions she’d impose
- the $100 billion fee on “big banks”
- a 6% wealth tax
- much higher capital gains tax rates
- and a requirement that taxes be paid on cap gains every year, whether or not the stocks are sold
Guess who will be paying all those costs?
People need to remember that corporations do not actually pay higher taxes–they pass those tax hikes on to the consumer in the form of higher prices. Consumers pay higher corporate taxes and higher corporate taxes drive businesses out of the country.
The article concludes:
Meanwhile, drug companies would be entirely at the mercy of whatever price caps Warren decides to impose (namely, 70% cuts for brand name drugs and 30% cuts for generics), since they’d have no other buyers.
Pharmaceutical companies that don’t play ball, she says, would risk losing their patent protection (through compulsory licensing) while the government takes over drug manufacturing. Say goodbye to the pharmaceutical industry.
In sum, Warren is peddling a health plan that, if it were actually enacted, would devastate the economy, wreck the nation’s health care, and put the government in control of just about every business decision. And she has a good chance of claiming the Democratic party’s nomination. That’s frightening.
And right now, she is one of the leading candidates for President.