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Socialized Health Care Doesn’t Work

July 18, 2009

The following statistics are taken from an article written by Deroy Murdock in 2006.

• Breast cancer is fatal to 25 percent of its American victims. In Great Britain and New Zealand, both socialized-medicine havens, breast cancer kills 46 percent of women it strikes.
• Prostate cancer proves fatal to 19 percent of its American sufferers. In single-payer Canada, the National Center for Policy Analysis reports, this ailment kills 25 percent of such men and eradicates 57 percent of their British counterparts.
• After major surgery, a 2003 British study found, 2.5 percent of American patients died in the hospital versus nearly 10 percent of similar Britons. Seriously ill U.S. hospital patients die at one-seventh the pace of those in the U.K.
• “In usual circumstances, people over age 75 should not be accepted” for treatment of end-state renal failure, according to New Zealand’s official guidelines. Unfortunately, for older Kiwis, government controls kidney dialysis.
• According to a Populus survey, 98 percent of Britons want to reduce the time between diagnosis and treatment.

The statistics are alarming for sure. The question then is: why do the nations with socialized medicine fall so short? Is it technology? No, all of the nations mentioned above have sophisticated health care equipment. The answer is simple: less options. Socialism of medicine, or socialized anything for that matter, crushes competition. Everything is slower and less efficient.

These statistics, written 4 years ago, are very perdinant for today. The Obama administration wants to pass sweeping healthcare reform that would give more control to the government and less options to the people. It is estimated that over 10 years it would cost 1.3 trillion dollars. Medicaid would dramatically be increased. Companies would be required to provide health insurance.  Individuals would be required to buy health insurance. Michael Tanner, writing in National Review, said this to say about it: “individual mandate is essentially a disguised tax.”

ATF (Americans for Tax Reform) released the tax increases that the Democratic health bill would bring.

  • a tax on individuals failing to sign up for health care equal to the lesser of 2.5% of adjusted gross income (AGI) or the average individual premium amount
  • a tax on employers for not providing a health care plan equal to 8% of payroll.  This becomes 0, 4, or 6 percent of payroll as payday totals dip below $400,000 annually
  • a new and undetermined excise tax on health insurance plans
  • codification of the “economic substance doctrine,” whereby businesses would not be able to engage in legal tax avoidance techniques without demonstrating a bona fide business purpose
  • delay of worldwide interest allocation, a baby step toward the full double-taxation of corporate profits earned overseas
  • the big one–a new “surtax” on the AGI of small businesses and other high income earners.  Here’s the details:

1% on AGI of $350,000 to $500,000
1.5% on AGI of $500,000 to $1,000,000
5.4% on AGI of over $1,000,000

Those brackets are 50% if you’re Married Filing Separately, and 80% if you’re Single or Head of Household

This will result in a top rate of 45%, and a capital gains rate of over 25%.  It’s more than that when you factor in that this surtax is not on taxable income, but on adjusted gross income.  Factoring that plus state income tax in means that the top rate will exceed 50%, and the capital gains rate will exceed 30%.

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