- Aug 2019
The tax burden would be enormous, roughly doubling the current tax obligations for today’s taxpayers. One funding option Sanders proposes is a 7.5 percent payroll tax, plus a 4 percent income tax on all Americans, as well as a wide variety of specialized taxes on investments and taxes targeted to higher-income Americans.
According to the analysis above, it can be said that the "Single-payer" system aims to reduce costs for users but ultimately has a higher tax rate than the conventional healthcare system.
The Urban Institute estimates 10-year spending of $32 trillion, only about half of which would be covered under Sanders’ funding options Mercatus Center’s Charles Blahous estimates a 10-year $32.6 trillion increase in federal spending. Even “doubling all currently projected federal individual and corporate income tax collections would be insufficient to finance the added federal costs of the plan.” Economist Kenneth Thorpe of Emory University estimates $24.7 trillion in additional federal spending, and also estimates an average deficit of $1.1 trillion per year. The Center for Health and Economy estimates a 10-year net cost of up to $44 trillion, and an annual deficit of $2.1 trillion.
The estimated costs given by the institutes proved that the "Single-payer" system could not work properly, and it also made the United States a heavy loss.