Based on information compiled by the federal Agency for Healthcare Research and Quality, Wisconsin ranks number one in the nation. As I reported early in July, the Wisconsin Democrats want to change that. Wisconsin's Democrat controlled Senate wants to raise our taxes by $15 billion (more than we raise from corporate income taxes, sales taxes and income taxes combined) to pay for this experiment of a totally government-run health care system.
This exercise is especially instructive, because it reveals where the "single-payer," universal coverage folks end up. Democrats who run the Wisconsin Senate have dropped the Washington pretense of incremental health-care reform and moved directly to passing a plan to insure every resident under the age of 65 in the state. And, wow, is "free" health care expensive. The plan would cost an estimated $15.2 billion, or $3 billion more than the state currently collects in all income, sales and corporate income taxes. It represents an average of $510 a month in higher taxes for every Wisconsin worker.
Employees and businesses would pay for the plan by sharing the cost of a new 14.5% employment tax on wages. Wisconsin businesses would have to compete with out-of-state businesses and foreign rivals while shouldering a 29.8% combined federal-state payroll tax, nearly double the 15.3% payroll tax paid by non-Wisconsin firms for Social Security and Medicare combined.
This employment tax is on top of the $1 billion grab bag of other levies that Democratic Governor Jim Doyle proposed and the tax-happy Senate has also approved, including a $1.25 a pack increase in the cigarette tax, a 10% hike in the corporate tax, and new fees on cars, trucks, hospitals, real estate transactions, oil companies and dry cleaners. In all, the tax burden in the Badger state could rise to 20% of family income, which is slightly more than the average federal tax burden. "At least federal taxes pay for an Army and Navy," quips R.J. Pirlot of the Wisconsin Manufacturers and Commerce business lobby.
As if that's not enough, the health plan includes a tax escalator clause allowing an additional 1.5 percentage point payroll tax to finance higher outlays in the future. This could bring the payroll tax to 16%. One reason to expect costs to soar is that the state may become a mecca for the unemployed, uninsured and sick from all over North America. The legislation doesn't require that you have a job in Wisconsin to qualify, merely that you live in the state for at least 12 months. Cheesehead nation could expect to attract health-care free-riders while losing productive workers who leave for less-taxing climes.
This is giving to you with one hand, while taking much more from you with the other hand. Also Wisconsin Senate Democrats want to:
Create the first child care tax deduction in state history, but increase birth certificates fees; double fees to pay child support; create a new fee for those receiving child support.
End the tax on job creation in this state, but make it more expensive to drive to work with a $270 million tax on oil companies that you pay at the pump.
Increase the tax deduction for higher education, but while increasing tuition.
Make all social security 100-percent tax free, while raising property taxes. The median home will be up $400 in this budget cycle, due to a governor Doyle veto.
Related Posts (on one page):
- Wisconsin Attempts to Socialize Health Care
- Will Wisconsin Stay On Top of the Healthcare Heap?
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