I have always thought that this debate will never be settled until a state gives it a shot and everybody witnesses the result.
So, I was excited to see that Vermont, of all places, was indeed going to give it a shot when they passed Act 48 back in 2011. It was no longer a theory, a state was really going to do it––"Medicare For All."
Until last month.
Turns out reality crashed head-on with ideology a lot quicker than even I expected it to.
Vermont's governor pulled the plug on his plan because the state couldn't afford it:
- It would have cost Vermont $2.6 billion in the first year to implement the plan––the state now raises only a total of $2.9 billion a year in taxes.
- To raise the money it would have required the state to impose a new 11.5% payroll tax on businesses AND a new personal income tax ranging up to 9.5%. The state already has the seventh highest state income tax, maxing at 8.5%, and a 6% sales tax.