ObamaCare a mess? Go single-payer, say liberals

Before falling for these myths, consider what Reich and Krugman are not telling us.

First, they do not admit that their beloved single payer system is being grafted into a Medicare which already cannot keep its promises. Medicare’s unfunded liabilities eclipse those of Social Security. Any actuary will tell you that, when the next generation retires, Medicare will be trillions of dollars short in paying its bills. In fact, Obama Care largely gets its own funding by robbing an already underfunded Medicare to pay for the Obama exchanges and Medicaid expansion.

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Second, single payer systems elsewhere are paid for primarily by payroll taxes. The U.S. payroll tax rate is currently 15.3 percent with an additional 2.3 percent for higher income earners thanks to Obama Care. In the single payer systems of Europe, the payroll tax averages 37 percent. (Economists have long taught that the wage earners ultimately pay the payroll tax whether it is formally paid by the employer or employee). To pay for a single payer system like Europe’s, America’s middle class would face a doubling of payroll taxes and a fifty percent increase in their total taxes on income. Americans would pay about 45 percent of their earnings for federal taxes on income alone. After that they have to worry about state taxes and local property taxes.

Third, the Obama Care website is only about directing families to buy health insurance that meet Obama Care requirements, while informing them what the policy will cost after subsidies. It does not address real medical-care issues like which treatments will be covered, which doctors you can see and with what wait times, what reimbursement fees will doctors receive, what R&D costs pharmaceutical companies can recoup, or what kind of end-of-life care can seniors count on.

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