Recently, Senator Elizabeth Warren, candidate for President, proposed Medicare Insurance for everyone. The idea of universal health insurance goes back to the 1980’s with Hilary Clinton. It was a great idea then and it still is today. Helping out the young, the unemployed, the underemployed and anyone else left out by the American society is a good and humanitarian idea. However, the question is, who will pay?
Senator Warren again singles out the usual villains. She believes the rich and business should pay. Most importantly though, she points out it will cost “The Middle Class,” nothing! Do you in all actuality believe this? Since all business is affected then all classes of business will have an increase in cost in operations (pre-tax or post-tax). Realistically, speaking, a 22% tax increase on business will likely result in eventually a 22% increase in goods and services. To whom, you might ask? The answer is “The Middle Class,” will pay.
Senator Warren includes in the “Who will Pay,” villain category the rich. This is a nearly impossible category to attack given its ability to increase its business income base, invest overseas and support tax-deductible non-profits that need their goods and services. This category defines “Circle Jerk,” which in essence means the fruits and the labors are passed around landing exactly where they started! Most of us deep down know the above attack on business and the rich will be futile and the ultimate cost will fall on the middle class.
Senator Warren might consider this alternative. It is difficult to pass on sales taxes on public stock trades but just think about this as an income generator for Universal Health Insurance. The average public stock trading day exceeds 6.3 billion shares. This means in a normal year of 253 trading days 1.594 Trillion shares are traded. If just $.01 was charged per share then 15.94 billion could be raised for Universal Health Insurance. Moreover, it would be nearly impossible for the wealthy to pass on the cost or for business to even be touched in its business cost basis. Nothing would land on The Middle Class. Only the investors with their surplus monies to invest would be touched!
The math maybe a little fuzzy but the concept is definitely food for thought! Let’s make a difference in 2020!