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Health care is obviously not the only difference in our systems.
31% + the average medical costs(premium, deductible, employer contribution, all out of pockets) would be the number to compare with against their tax burden on an equivalent level of services for an apples to apples comparison. I'd imagine it's pretty similar.
The US average income earner does NOT pay a 31% effective federal income tax rate. It's actually only 3%, and around 10-11% when SS and Medicare taxes are added. Source for the 3% effective federal income tax rate data, chart on page 10: https://fas.org/sgp/crs/misc/R45145.pdf
I find it pretty ironic that you are talking about apples to apples since you NEVER do that.
Your "European equivalent" includes everything - all types of taxes including those paid by the employer. In addition to that, what those taxes cover is vastly different - healthcare, education, large portions of childcare, family leaves, pensions, and what not. Many of those items here are either not covered at all, and are huge out of pocket expenses, or in some cases (like K-12) paid via property taxes, or state taxes, or sales taxes.
Now, there is no question that something like Medicare for all would cost in grand total less than the current health system if for no other reason than drastically cutting the overhead. What I suspect your real issue is that a program like this would be paid by a payroll tax, like current Medicare, and it could very well be on the whole income without a limit.
That's the point. For all of those who think the Fed Gov should provide such things, be prepared for the average income US worker to have to pay an effective federal tax rate of about 45%, like those in European countries do.
The US average income earner does NOT pay a 31% effective federal income tax rate. It's actually only 3%, and around 10-11% when SS and Medicare taxes are added. Source for the 3% effective federal income tax rate data, chart on page 10: https://fas.org/sgp/crs/misc/R45145.pdf
The 31% is the total income/payroll tax burden, not just the fed tax rate. See my tax foundation link.
That's the point. For all of those who think the Fed Gov should provide such things, be prepared for the average income US worker to have to pay an effective federal tax rate of about 45%, like those in European countries do.
Look, I know I'm wasting my time, but:
The "average US worker" already pays a lot in taxes: federal, payroll, sales, property, state. And then come the extra items: healthcare, retirement, daycare, college, family leaves. When you sum all of this up, it can easily exceed your magic 45% number for many in the middle class as of today.
Things need to be paid for, there is no free lunch.
BUT, as I also said, for somebody making millions, or 10s of millions, or more, it is much better to have all of these stay as extra items, because they would be negligible compared to income.
20k in daycare on a 100k income is 20% effective tax on this income.
15k in insurance is 15% effective tax.
2.5% property tax on a 300k house is equivalent to 7.5% tax on the income.
Payroll taxes - about 8%
Retirement ....
I even didn't have to include federal income tax..
The 31% is the total income/payroll tax burden, not just the fed tax rate. See my tax foundation link.
Not possible. The entire (employee plus employer) SS and Medicare tax is 15.3%. Add that to the average US household's effective federal income tax rate of 3%, and it totals only 18.3%.
To confirm that 3% effective tax rate, I posted a FAS/CSR link, and here's another:
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