Medicare for All Harms Most Americans

Proposals to impose a government-run health care system, such as the pending “Medicare for All” legislation, on the American public would leave most households financially worse off. Workers would have to pay additional taxes—21.2 percent of all wage and salary income—raising the total federal payroll tax rate to 36.5 percent for most workers. Average disposable income (after taxes and private medical expenses) for all households would decline by $5,671 per year. We also find that nearly two-thirds of American households (65.5 percent, comprising 73.5 percent of the population) would pay more in taxes than they would save from no longer paying health insurance premiums and the absence of out-of-pocket medical spending. For households with employer-sponsored insurance, 87.2 percent would be worse off financially.