I know it’s become de rigeur for some to call the Affordable Care Act “socialism” or even “Armageddon”. But it’s not even close. Do you want to know what truly radical reform would have looked like? Look at Taiwan. They have a single payer system, where premiums are set at 4.55% of income. Because of increasing costs, they are talking about raising the premium rate to 5.17% of income.
Recognize that while it’s a single payer system, their tax rate isn’t much more than the Medicare tax rate, and their system covers everyone, not just the elderly.
Anyway, people are still upset about the increase. So they are going to change it. Check out how:
According to Yaung, the premium rate for the second-generation system will be lower than at present because premiums will be calculated on a broader income base.
Under the new scheme, premiums will take into account a household’s total income, including wages, stock dividends, rental income and other unearned income.
Their solution was to make the tax even more progressive. They will tax not just on earned income – but wealth, but other sources of wealth as well. This will, of course, impact the wealthier citizens far more, allowing those in the middle and lower class to pay even less of a share.
Imagine what could have been. And stop crying wolf.