Paying for 'Medicare for All' could require raising payroll taxes by 32% on workers and businesses, according to a new report. But the report also suggests that middle class families could save money overall, even with significantly higher taxes.
The new report assumed Medicare for All would add an additional $30 trillion in federal spending over 10 years, which is toward the lower end of outside studies and in line with rough estimates by Sanders, the author of the Medicare for All bill.
Other options that on their own could fund Medicare for All, according to the study, include a 25 percent income surtax; a 42 percent value-added tax on consumption; a move to more than double all individual and corporate tax rates; or, more likely, a combination of taxes. While the report warned that some of the tax options presented would slow economic growth or push top tax rates so high that they no longer maximize revenue, its authors also suggested that Medicare for All could reduce average total costs for lower- and middle-income families by eliminating more medical expenses than they would pay in taxes and requiring higher earners to pay a larger share of their tab — the standard both Warren and Sanders have argued voters should apply to their plan.
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