It Means Higher Taxes and Additional New Taxes. Yes, a new entitlement program for all Americans will cost lots of money. Higher taxes and totally new taxes will be needed. Already proposed tax increases include the extension of a 2.9% Medicare payroll tax to interest, dividends, capital gains, annuities, royalties, and rents for some tax payers. An additional 0.9% payroll tax has also been proposed. Forcing every American to purchase health care insurance (possibly at a higher cost) is also an implicit tax.
It Means Fewer Jobs. Yes, taxes and jobs are closely correlated. With higher taxes pulling dollars out of the private sector to pay for health care, comes declining investment dollars for new businesses and new jobs. Government spending for health care has a much lower economic multiplier than private sector dollars spent for health care. Overall new job creation will be lower under government-controlled health care. [more...]