"Entrepreneurs are already being driven out of California by high taxes and other poor policies. The real problem is cost inflation driven by regulation, administrative complexity, limited competition and distorted incentives. The U.S. already spends more per capita on health care than any other nation. Money is consumed by bureaucracy, price controls that discourage supply and policies that separate consumers from costs. More tax revenue does not fix these structural flaws. It entrenches them."
"While I think a continuing tax, especially federal, would be best, both outcomes seem good. Supposing no exodus, the tax rate bump would be a rather small step back to historical tax rates for high-income folks. The 70s saw income tax rates for the rich of 60-70% and a capital gains tax of around 35%. Currently, it's reported that billionaires have an effective tax rate lower than the middle class, at the same time using public infrastructure while enriching themselves at our expense. Something must change."
High taxes on the wealthy are presented as a simplistic remedy that will not address structural causes of health-care cost inflation such as regulation, administrative complexity, limited competition, and distorted incentives. Bureaucracy, price controls, and policies that separate consumers from costs drive higher per-capita U.S. health spending and reduce supply responsiveness. Increasing tax revenue without system reform can entrench inefficiencies and will not expand physician supply, lower malpractice costs, accelerate innovation, or increase hospital capacity. A wealth tax could raise revenue and restore historically higher rates, while billionaire departures may create short-term pain but also fiscal or political effects.
Read at www.mercurynews.com
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