WHAT IF PAUL RYAN PROPOSED A HEALTH INFLATION TAX ON SENIORS INSTEAD?

In honor of Paul Ryan, I have a thought experiment up on the Washington Monthly blog:

“My fellow Americans, it’s time for straight talk, tough decisions, and tight belts. Health care inflation is a prime driver of our long-term debt. That’s why I’m going to save Medicare with my Health Inflation Tax. It’s a simple solution: each senior will just have to pay a tax equal to the increase in the cost of their Medicare to the government beyond 2.7% a year. So if your individual Medicare costs us 10 percent more next year, your tax will cover three-quarters of the increased cost of your care (the other quarter is on us!). Here’s the best part: if you want lower taxes, you just need to use less healthcare. And you can be proud knowing that as your Health Inflation Tax goes up and up, Medicare’s net cost to the government will never increase by more than 2.7% again. Now let’s come together and get my Health Inflation Tax passed. No demagoguery allowed.”

How popular do you think this plan would be? Would it have gotten the same forty Senate votes Ryan’s plan did on Wednesday?

Read it here.

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