New York’s Single Payer Health Care Plan Will Burden Tax Payers

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singlepayer

New York’s expensive idea, single payer health care, is going to cost the state more than their entire annual revenue. The state currently has around $71 billion in tax revenue, but just this health care plan would cost over $91 billion, and that’s likely a low estimate.

The single-payer health care plan that cleared the lower chamber of New York’s state legislature on Tuesday would require massive tax increases to double and possibly even quadruple the state’s current annual revenue levels. The plan, which was passed 87-38, would eliminate all private insurance in the state while keeping medicare and Medicaid and would provide health care to everyone in New York through the state government.

The New York Health Plan would add to the already hefty tax burden on the state’s residents. The financial aspects of this massive health care takeover will be the biggest challenge for the state. New York collected about $71 billion in tax revenue last year. In 2019, when the single-payer plan would be enacted, the state expects tax revenue to exceed $82 billion. To pay for health care for all New Yorkers, though, the state would need to find another $91 billion annually, and that’s a low estimate. The cost of this health care plan is likely to far exceed the estimated $91 billion. Of course, the state’s largest health care union is backing the government takeover of the industry, and that will help drive the costs even higher.

Gerald Friedman, an economist at UMass Amherst and longtime advocate for single-payer health care, estimated in 2015 (when the New York Health Act was first passed by the state Assembly) that implementing single-payer in New York would cost more than every other function of the state government. Friedman also suggested a massive tax increase on New Yorkers pay for the government-run health care. He feels that New York should invent a new tax on dividends, interest, and capital gains that would range from 9 percent to 16 percent, depending on how much investment income an individual reports, and a new payroll tax that would similarly range from 9 percent to 16 percent depending on an individual’s income.

But other estimates for the cost of New York’s single payer health care plan would require quadrupling the tax burden on residents, making a 9% increase in income taxes look tiny. According to the Foundation for Research on Equal Opportunity, a Texas-based free market think tank, the annual price tag for the New York Health Act could be as high as $226 billion. Tax burdens have the biggest challenge in other states that have attempted to implement single payer health care. Colorado’s voters rejected single payer health care when they saw how much it would cost them in income taxes. For those already living paycheck to paycheck, any increase in taxes could do untold harm to the financial stability of those individuals, having a ripple effect in New York’s economy.

The economic disaster that follows such a massive tax hike would drive businesses out of the state and many people would lose jobs and homes or be driven to states they can afford to live in. But most don’t look at the financial impact, only that they would be getting “free” government-run health care that is far from free.

While a similar bill cleared the state assembly in 2015 and 2016, it never made it to the senate for a vote to become a law. That’s likely to change this time, but passage will still be difficult. The votes may not be there because of the politics of doubling, tripling, or quadrupling a constituents tax burden may not be in the best interest of the politicians now in power, especially when the gain is government health care.

The bill has many hurdles to overcome still, with the tax increases needed being the biggest one. Most Americans already think their taxes are way to high, so asking residents to cough up more of their hard-earned money will be an uphill battle for the state.

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Contributed by Dawn Luger of The Daily Sheeple.

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  • breakawaymotorsports .

    Get ALL government OUT of the insurance business. Healthy people who live responsibly should NOT have to shoulder the burden of those who care little about their “health”, until they are injured or ill. The strong shall survive.

    • lowtolerance

      Wrong. Get the private sector out. But by all means, continue to believe the rest of the world is wrong and you’re just that big of a badass. Wish I could see the way karma’s going to turn you inside out.

      • breakawaymotorsports .

        Old enough to have seen that socialism never works. Never. You either pull the cart or are in the cart..and those that pull the cart have had enough. Those in the cart only scream at those pulling to pull harder. F that. The free ride is over.

        • g.johnon

          socialism never ever works…. but crony capitalism trying to pass itself off as a free market economy is no better. often it is much worse.

          • ReverendDraco✓ᵛᵉʳᶦᶠᶦᵉᵈ ᵃᶜᶜᵒᵘᶰᵗ

            Calling it “crony capitalism” misdirects the low-infos.
            It causes them to falsely conflate with free market capitalism, the greatest force for good in the history of ever. Better to call it “corporatism” – the bastard child of socialism and fascism.

          • Mussolini said, “Corporationism is above socialism and above liberalism. A new synthesis is created. It is a symptomatic fact that the decadence of capitalism coincides with the decadence of socialism. … Corporative solutions can be applied anywhere.”

          • “The problem with socialism is that eventually you run out of other people’s money.” Margaret Thatcher

      • ReverendDraco✓ᵛᵉʳᶦᶠᶦᵉᵈ ᵃᶜᶜᵒᵘᶰᵗ

        Low-infos like you crack me the fuck up.

        The private sector is the source of virtually every positive in existence.
        Every problem with the healthcare system can be traced directly to the government.

        Why is Healthcare so expensive? Government.
        Why can’t I buy health insurance on the market like I can car insurance? Government.
        Why do I have to pay extra for insurance that covers drug rehab, abortions, and sex change operations? I’ll give you three guesses – the first two don’t count.

        A more perfect example of Ringo’s Law in action, than government-mandated and -controlled healthcare, cannot be found anywhere in the world.

        • It’s almost as if people are more willing to pay for what they need with high wages rather than ask the government to step in.

          • ReverendDraco✓ᵛᵉʳᶦᶠᶦᵉᵈ ᵃᶜᶜᵒᵘᶰᵗ

            Back in March, Ann Coulter wrote an article outlining the best healthcare policy I’ve ever heard of.

          • Your phone censors you?

          • I agree, and while they’re at, they need to get rid of the mandate that punishes Obamacare while we’re at it, as well as place some regulations of companies that prevent mergers and power grabs.

          • The prevailing low and falling wages kind of mess that up.

        • Sometimes it is a good thing that he retired from making music when he could bring us gems like, “Everything government touches turns to crap.”

      • How do you define private sector?!
        70% of the American economy is consumer spending, and that is all in the private sector by the usual definition.

    • Simon says

      sorry ain’t gonna fly… this country has legislated against survival of the fittest for generations now…racist to want only healthy people surviving…fat, dumb, lazy milquetoast is the new ideal citizen.

    • Get all government out of all business.

  • Mike

    well the idiots in NY get what they keep voting for. What happens when you tax everyone out of existence? Who pays for it then. Oh, right, just like the UK, people are euthanized or left to die on waiting lists. DEATH PANELS.

    • It is a major complication that most of what there to pay for is a very poor value.
      I’ve spent the last decade improving my nutrition and that seems to do more for my health than any insurance I’ve ever seen. That is a good thing, now that my monthly income from Social Security is only $809 after the IRS takes its 15%. I have never been subject to Obamacare because I am legally homeless.

  • (((((Socialism)))))

    Invented by a Jew. (((Hmm….)))

  • Frank

    New York just hasn’t learned, or at least acknowledged, their lesson in abject failure when they raised the taxes a few years ago. What happened? Businesses packed up and left the Empire State for less-onerous and tax burdensome locations. The state’s tax revenues plummeted and, in response, they started a new program of (initial) low taxes to lure businesses back to NY. The same thing is going to happen with this delusional, single-payer state healthcare system. People (tax payers) will flee when their taxes are increased to the point of making it impossible for them to maintain a decent standard of living, get quality healthcare as needed, or they feel that the taxes are grossly unfair. I guess the “deciders” of superior intellect and vision in NY have completely failed to learn from history with regard to basic principles of taxation, perception of fairness, and the predictable response of tax avoidance.
    Idiots.
    NY is going the same way as CA, a whole boatload of costly, unsustainable social welfare programs that require increasingly huge sums of money to operate – but are doomed to ultimate failure. NY and CA need to wall themselves in, to keep us non-believing neanderthals out, so they can live in the lavish bliss that they so desire.

  • Amanda Ham

    I wonder if the average price of premiums, deductibles, out of pocket costs, ect… on a traditional healthcare policy would be less or more than the tax increases.

  • ReverendDraco✓ᵛᵉʳᶦᶠᶦᵉᵈ ᵃᶜᶜᵒᵘᶰᵗ

    I’m all for Single Payer Health Care – the person who makes use of the service is the single person who pays for it.

    All it takes is a wall of separation between medicine and State.

    • The founders thought they were establishing a wall of separation between the state and everything else. They might have succeeded in that had We the People not abdicated as soon as they could get a job after the revolution. Thomas Jefferson knew we would do it when he wrote that “(t)he spirit of the times may alter, will alter. Our rulers will become corrupt, our people careless. A single zealot may become persecutor, and better men be his victims. It can never be too often repeated that the time for fixing every essential right, on a legal basis, is while our rulers are honest, ourselves united. From the conclusion of this war we shall be going down hill. It will not then be necessary to resort every moment to the people for support. They will be forgotten, therefore, and their rights disregarded. They will forget themselves in the sole faculty of making money, and will never think of uniting to effect a due respect for their rights. The shackles, therefore, which shall not be knocked off at the conclusion of this war, will be heavier and heavier, till our rights shall revive or expire in a convulsion.”