Will a “Tax” Fix Our Healthcare System
The concept of a wealth tax sounds great, tax the ones with most (they may not even notice) and spread it out to programs that typically benefit the less fortunate. The problem is this hasn’t worked. Let’s pretend for a second that the Government actually redistributes this wealth in an efficient manner (unlikely but not even part of my argument for this post). Instead I will draw on my 15+ years of experience working with small business owners. And here’s the fact that’s not considered enough in when discussing things like wealth taxes or affordable care act. A small business owner is typically the last one to take a pay cut. See at some point the owner decided that they didn’t want to work for someone else. And the reward for all the blood, sweat and tears is you have control over what amount of money you take home. So if the owners tax rate goes up, or there are increased employee costs it rarely comes out of the owners pocket. Instead it comes directly out of the employees pay, through a reduced bonus or smaller to no salary increases overtime or just a cut in the workforce. Instead of helping the less fortunate it hurts them by reducing their current pay, future pay and/or ability to find a job and stay employed. While this may not be true for huge corporations it is for small businesses which makes up a largest portion of the workforce (53% of private employees and 95% of all businesses).
Time and time again politicians have attempted to fix a problem that isn’t the actual problem. See whether you pay for your healthcare or the government subsidizes or pays for it entirely the money has to come from somewhere and the costs are too expensive. You have to attack the cost structure and reduce the waste and inefficiencies that create unnecessary costs. Until you do that there is no level of tax that will fix our healthcare problem in this country.
These are general statements and may not apply to your individual situation. You should always consult your CPA, Investment Advisor or other professional to see how this relates to you.