How to pay for universal health care
March 8, 2019 - 9:00 pm
Donald Trump’s declaration that “America will never be a socialist country” shows how little he knows about America. We have many so-called socialistic programs that benefit all of us. Social Security and Medicare are two of our most popular and successful ones.
The Social Security benefits I’ve earned help me live day to day. I’ve been covered by a Medicare-administered health insurance plan for more than 10 years. I love my doctor. My clinic is six blocks from my house. The provider is a privately owned company. The copays are reasonable, and I get a break on prescriptions. What’s there not to like? Despite the rants from Mr. Trump and his fellow Republicans, it could easily be the blueprint for universal medical coverage for everyone.
The apparatus for handling such a plan is already in place. It’s called the Social Security Administration. To quell the naysayers, who claim it would be cost-prohibitive to provide medical care for everyone, I offer a basic solution: Remove the FICA tax cap on earnings.
Currently, workers making less than the capped amount of $132,900 pay a 7.65 percent Social Security tax on every dollar they make. Employers match this amount. Once earnings reach the cap amount, or a total of $10,166 is paid in, the employer and the individual are no longer subject to this tax.
By contrast, the average American household gets by on less than two-thirds of that amount, and medical insurance sucks up 15 percent of that.
I suggest leaving the cap in place for employers. The self-employed would also have to be dealt with separately. By removing the cap on individuals, high-income earners would also pay the FICA tax on every dollar they earn.
I’m no mathematician, but I can all but guarantee that collecting the FICA tax on 100 percent of all earned income would be more than enough to pay for the plan. Can anyone prove me wrong?