As the embattled minority party feebly tries to convince enough Democrats to oppose the Universal Healthcare plans proposed in the House and Senate, much attention has been focused to the details of the plans in order to shore up opposition. The so-called “public option,” which would offer a wholly governmental healthcare provider and thus likely kill all competition because unlike private businesses, the federal government won’t go bankrupt no matter how inefficiently it operates; subsidized abortions; broadening the ability to “buy into” Medicare and so on.
The most important issue, however, isn’t in the details of any of the plans. The real $64,000 question is, is universal federal healthcare a good idea at all? Is it within the purview of the federal government? Of course HAVING universal health care is wonderful. But PAYING for it isn’t.
Now many people have recently pointed to Israel as an example of a quality universal healthcare system. First, its important to note that Israel doesn’t have a public option. More important however, is the cost. Israelis pay enormous taxes, with one of the biggest burdens being the healthcare system. Income taxes on someone who earns a mere $23,000 a year are 49%. Compare that to the 15% a person earning that same wage would pay in America (and let’s not forget the deductions and tax credits that reduce low income earners tax burden even further). Even Israel’s Social Security tax (called National Insurance) is higher, with a total rate of 15% compared to 12.4% in America (or 13.8% if Medicare Tax is included). In addition, Israelis pay 16% nation-wide sales tax, a special tax on cars of nearly 100% (thus doubling the price of cars); not to mention the luxury taxes and tariffs that raise prices on other items. Recent studies estimate that the average Israeli loses half of his money to taxes, an astounding considering the relatively high level of poverty in Israel.
Considering America’s already massive deficit and $13 trillion debt (which is equal to the annual US GDP), is adding another massive expense really such a great idea? Will the new healthcare system have provisions to prevent the millions of illegal immigrants from exploiting it and burdening tax payers? Considering the abuse of the present system in states like California, where illegals benefit from free state provided care at the expense of the tax payer, I doubt the federal system will be much better. But hey, it’s your money.
JC,
ReplyDeleteIsraelis pay more than HALF their income on taxes. What needs to be done is cut all the parasites (Ultra-orthodox and arabs) out of the equation and let local municipalites pay for their schools. Allow a real free-market to take place not this bend me over and nail me from as many possible angles as possible approach. The average person gets nothing in his return on his taxes. Let the Arabs and Ultra-Orthodox starve to death and their children, which I might add they are already doing a fine job of doing. Once these populations kill themselves on their own accord the system will correct itself.
RC
Only a part of Israeli wage owners actually pay taxes. for many of them, the wage they earn is so low, they don't pay any taxes. Yet all receive a decent quality of universal health care.
ReplyDeleteThat includes many fairly recent migrants form the ex soviet union territories who arrived at an advanced age and never worked in the country as much as one day. These elderly received full citizenship on the day of their arrival as "olim hadashim" and also receive a monthly pension.
The problem, yudit, is exactly what you point out, that many Israeli wage earners dont pay taxes because they earn so little. The taxes here (Israel) affect even those earning much less than in the US, but because of the outrageously high taxes here, the economy is very stifled, companies unable to pay workers as much, and many workers, even in good jobs, are paid pathetically low wages. This is a situation which discourages work, entrepenuring, and higher education. In short its poison to the economy. The only answer is to scale back the massive welfare state we have here.
ReplyDelete