Wednesday, November 6, 2019

Bernies Healthcare Plan is Best

Bernie's plan for many reasons, including the funding mechanism.  We collectively pay for it, so it can't be taken away, dammit, or watered down.  We don't pay that much, and if our income is low, since copays and deductibles and other unexpected costs are eliminated, we're much better off, income below $29,000 isn't taxed at all, and it's only 4% on income above that.

Charging employees as they pay now under ACA rules sounds appealing to many, but it perpetuates a good job killing system we've had for ages.

Per-employee healthcare cost puts US employees at disadvantage, it was long said, now rarely perhaps because fewer have anything decent.  But it seems hardly the best plan going forward either.  It creates strong incentive to offshore all the decent large factory jobs because those are the ones that give healthcare benefits.  So, everyone is working in a contract arrangement of some kind so the employer doesn't have to pay benefits.  This is not a way to run an efficient society that makes things.

Employee-contribution payroll taxes like SS and Medicare don't have the same job killing effect.  In that case, it's often said, it simply comes out of higher pay.  But officially charged to employer provides a slight employee edge, employer has to offer higher package to make it "sound" better.  But it doesn't kill any class of jobs, it merely reduces nominal salaries compared with actual ones.

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