Week 4: Taxation on Labor Supply and Business Income

Why the road to universal health care in America looks rocky

The article discusses the current debate on the Democratic side of the Presidential race. It is generally agreed, on this side, that healthcare reform is needed. Many support a Medicare for all. Elizabeth Warren and Bernie Sanders support a single payer system similar to the National Health Service in the UK. Such systems in other developed countries are financed by payroll taxes (or a tax on labor). The estimates of funds needed in the first decade run from $32-$34 trillion. This is a large sum to finance. Warren wants the rich to bear the burden of the tax. It will be interesting to learn more on how specifically the rich would be taxed so that we can speculate on who will really bear the burden of any potential tax.