How Warren and Sanders pay for Medicare for All
WASHINGTON (AP) — Here’s a look at Massachusetts Sen. Elizabeth Warren’s proposals to pay for Medicare for All and how they compare to financing options identified by Vermont Sen. Bernie Sanders. Both are running to be the Democratic presidential nominee in 2020.
—Employer Medicare Contribution: In general, businesses would pay the government an amount that’s based on what they’re currently spending to provide coverage for their employees. That would raise about 40% of the $20.5 trillion over 10 years the Warren campaign estimates will be needed for Medicare for All.
—Taxes on Additional Take-Home Pay: What employees currently contribute to their job-based health insurance would come back to them as higher pay. Taxed at current rates, that would raise more revenue for the government.
—Taxes on Financial Firms: A 0.1% tax on the purchase of stocks, bonds, and other investment securities and a tax on transactions involving derivatives. There also would be a tax on the 40 or so biggest banks.
—Taxes on Large Corporations: Eliminating current tax law provisions that allow businesses to quickly write off the cost of their investments and instituting a new minimum tax on foreign earnings.
—Taxes on the Wealthy: Increasing Warren’s proposed billionaires’ surtax to 4% of net worth. Raising taxes on investment income for the top 1% of taxpayers.
—IRS Enforcement: Beefed up IRS enforcement would tackle tax avoidance, raising an estimated $2.3 billion over 10 years.
—Immigration Overhaul: Warren’s proposal to create a pathway to legal status for people who don’t have official permission to be in the country is estimated to have economic impacts that raise $400 billion over 10 years.
— War on Terror: Eliminating a Pentagon fund used for overseas anti-terrorism operations would raise an estimated $800 billion.
—Payroll Tax on Employers: Employers would pay a 7.5% payroll tax in lieu of what they currently spend to provide health care benefits. The first $2 million in payroll would be exempt from the tax to shield small businesses.
—Household Premiums: Households making more than $29,000 would pay a 4% income-based premium.
—Taxes on the Wealthy: Increased income tax rates for people making over $250,000, ending tax breaks on investment income for households making over $250,000 and limiting itemized tax deductions to 28% of income for those making over $250,000. Wealth tax on the richest 160,000 households.
—Taxes on Corporations: One-time tax on offshore profits. Fee on the largest financial institutions. Changes to accounting rules used by companies to reduce their tax liability.