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Higher Taxes and Worse Health Care


The New York Times recently released a poll showing that a majority wants the government to guarantee health insurance coverage to every American.

The poll also found that respondents would be willing to pay more in taxes—up to $500 more a year—to provide that coverage.

Of course, there’s nothing really new here. Pollsters regularly ask some version of the first question, and most Americans want people to have access to health coverage.

And we suspect the Times was thrilled to assert that Americans would be willing to pay higher taxes if that would make it all happen—primarily because the Times would like to see many Americans paying higher taxes, whether that money went to health coverage or not. However, pollsters also frequently ask whether the public would be willing to pay a little more if that ensured universal coverage and the answer is usually yes.

Where the public will turn on you is when that increase becomes—in the words of the late Sen. Everett Dirksen—real money.

Look at it this way, the average employer-based health plan for one person costs $6,629 a year, according to a recent survey by United Benefit Advisors. Multiply that times 47 million uninsured and you get roughly $311.5 billion—real money. That works out to a whole lot more than $500per taxpayer, especially since children, most retired seniors and the poor would be excluded from paying the tax.

Of course, the proponents of eliminating private sector health insurance and moving to a single-payer health care system—the generally preferred way to “guarantee” everyone has coverage—assert that the government doesn’t need any additional money. Since the U.S. spends about 16 percent of its GDP on health care, and most other developed countries spend between 8 and 10 percent and have universal coverage, proponents claim that putting us all under the government plan would likely save money.

But other countries spend less than we do because the government sets a cap on how much the country will spend on health care—in essence, one big price control. It’s not because the government is more efficient.

And like virtually all price control schemes, the other countries face shortages, waiting lines and rationing.

Maybe for its next poll, The New York Times should ask: If the government taxes you an extra $500 to guarantee everyone has coverage, how long are you willing to wait to get the health care you need?