Elizabeth Warren is still claiming that she can implement a 52 trillion dollar Medicare for All plan simply by taxing the rich. How realistic is that? Her wealth tax, whereby the rich will have to pay up to 5% of their net worth to taxes, would raise less than $4 trillion over 10 years. That leaves $4 trillion left to go. Even if you took possession of everything the rich have, you would not come close to paying for her socialistic policies. But, what do these policies cost Europeans? Single workers making $40,000 per year in Europe pay an average tax rate of 43.8%, leaving them with only $22,467. That’s one hell of a bite.
In Belgium and Germany, workers who make around $40,000 in income pay average tax rates of 50.6% and 50.2%. That means you get to keep less than half of your paycheck. Using the 43.8 tax rate, means that a taxpayer earning $40,000 would pay an additional $6000 a year or $60,000 over 10 years.
In reality, the United States would need to have even higher rates for the middle class, because unlike European universal coverage, the Democrat bills do not require any co-pays or deductibles. That money has to come from somewhere.
If the U.S. implemented European-style entitlement programs like Medicare for All, free college, guaranteed jobs and paid family and medical leave, it would also have to increase its tax rates — and not only for the rich, despite 2020 Democratic presidential candidate and Massachusetts Sen. Elizabeth Warren’s promises, Heritage Foundation senior policy analyst Adam Michel, author of the report, noted in the study.
Entitlement programs “do require higher taxes, but they don’t give us ‘better’ anything. Instead, you get a larger, more intrusive government that often doesn’t meet the needs of the typical American. The more we centralize things in Washington, the less those services are able to be tailored to what any individual or community needs,” Michel told the Daily Caller News Foundation.