Monday, October 26, 2009

Tax rates and universal health care.

We are currently earning $14/hour- not really enough to scrape by- that bring in about $1792/month of which $110 goes to social security and other taxes.
We have good health insurance- that costs our employer about $1495 per month (not counting dental).

If the US government has a single payer, universal health care then our business could pay us that $1495 per month more in wages. Our take home pay would be $3287/month.

Sounds great doesn't it? Well in most countries with single payer health care the taxes are high- 30-50 percent of wages. At 30 percent of wages that would be $986.10 going to taxes and a take home pay of $2300.90. That is $500 more in my pocket and it doesn't even count the savings of out of pocket medical expenses.

At 50 percent tax rate our take home pay becomes $1643.50 which is $38.50 less then what we are earning now- but our current medical bills (even with good insurance) comes to more then that from just 1 doctor's visit- so we would still be doing better then what we are doing now.

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