Friday, November 13, 2009

Health Care Bill Costs -- Redistribution of Wealth

My problem with this health care bill is very simple: math.

It is projected to cost $1.2 Trillion dollars over ten years, or $1,200,000,000,000.

That would be roughly $4,000 per citizen (pop. listed at 304,059,724).

BUT..... according to Bls.gov, only 108 million Americans are working. So...

That would be just over $11,000 in taxes per working person.

But, the government claims they will only tax the $500,000 or more "workers".

Well.....

According to the IRS, there were 1,039,289 individual tax returns filed with in income over $500,000.

So what would their new tax burden be?

$1,154,635 per tax payer making over $500,000 a year. Dividing by ten years gives an average increase of $115,464 per year for tax payers in this category. The actual burden for individuals is not apparent without some understanding of how this average increase would distribute over the various levels within the broad category of "over $500,000." Those earning $500,001 would probably pay substantially less than say, Bill Gates but how many Bill Gates and Warren Buffets are there? Wouldn't the preponderance of these folks be at the lower end of the range?

And this is on top of what they pay in taxes now.....
And if we were to remove the cap on taxable income for Social Security purposes, the affluent would take another big hit.
I know that the Government failed economics, but did the entire Government fail math too?

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BA Chemistry MS Public Administration MBA CPA