WOW! Pay Less, Get More!

95% of all households would see an INCREASE of thousands of dollars each year in their net income. 

How much could you save with Single-Payer?  Estimate your savings with our Healthcare Calculator!

Review the HR 676 funding formula used for determining your annual healthcare costs below.

You Pay Less!

Remember, the healthcare tax replaces ALL OTHER healthcare costs such as premiums, co-pays, deductibles. And the tax covers all members of the household. It's the household income that matters, not the number of individuals that make up that household. For example, an individual earning a household income of $55,000.00 pays the same amount of healthcare tax as a household of five or a household of three that have the same household incomes of $55,000.00.   

You Get More!

You would have comprehensive benefits including dental, vision, mental health, laboratory fees, long-term health care, medication and medical devices. And guaranteed health care from pre-natal to end of life with no fear of going without health care just because you couldn't pay for it. Don't forget that any portion of your health insurance that your employer pays now as a benefit, is part of your compensation package. Benefits are given in lieu of wages so you are actually paying for the entire cost of your health insurance premium - your share and your employer's share! You aren't getting anything free from your employer! You earn it with your labor! 

Your healthcare tax is based on your household gross annual income from wages/earned income plus dividends, capital gains, interest, profits, and rents. DO NOT INCLUDE PENSION INCOME or SOCIAL SECURITY INCOME as income for the healthcare tax.

Your estimate from this calculator does not include the tax on financial transactions that will apply mostly to the wealthiest 1% who make most of their income from investments or other non-wage income.  However, this tax applies to all levels of income when there is a financial transaction on investment products.  In reality though, because the vast majority of Americans do not earn income from these types of financial products or investments, it has been omitted from these calculations.

Basic Formula for Healthcare Tax

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  •    3% of total annual gross wage income 
  •    3% of annual gross wage income from wages over $53,000.00 
  •    6% of all income from dividends, capital gains, interest, profits, and rents   

Additional surtax on the highest income earners

If your annual income is above $225,000.00, add 6% of the total income above $225,000.00 from both wage and non-wage sources to the above amounts to get your healthcare tax.

EXAMPLE

1. Household gross income from wages up to $53,000.00

Formula: Take 3% of gross annual wage income. Add to that 6% of any income you get from dividends, capital gains, interest, profits, and rents.

Example: Household gross annual wage income of $40,000.00 with $1000.00 of income from dividends, capital gains, interest, profits, and rents.

        3% of $40,000.00  =   $1,200.00

    +  6% of $1000.00     =        $60.00 (income from dividends, capital                                                               gains, interest, profits, and rents)

Total cost  =  $1,260.00 per year 

(covers all members of household not per individual in household)

2. Household gross annual wage income above $53,000.00 up to $225,000.00 (about 48% of households)

Formula: Take 3% of gross annual wage income. Add to that 3% of gross annual wage above $53,000. Add to those 6% of income from dividends, capital gains, interest, profits, and rents.

Example: Household gross annual wage income of $75,000.00 with $5000.00 of income from dividends, capital gains, interest, profits, and rents.

    3% of $75,000.00  =  $2,250.00

 + 3% of $22,000.00  =  $   660.00 (amount above $53,000)

 + 6% of $5000.00     =  $   300.00 (income from dividends, capital                                                                   gains, interest, profits, and rents)

Total cost  =  $3,210.00 per year 

(covers all members of household not per individual in household)

3. Household gross annual wage income above $225,000.00

Formula: Take 3% of gross annual wage income. Add to that 3% of gross annual wage above 53,000. Add to those 6% of income from dividends, capital gains, interest, profits, and rents. Add to those above three amounts, 6% of total gross annual income (wage + non-wage income) above $225,000.00.  

Example: Household gross annual wage income of $250,000.00 with $15,000.00 of income from dividends, capital gains, interest, profits, and rents.

   3% of $250,000   =    $ 7,500.00

+ 3% of $197,000   =    $ 5,910.00 (amount above $53,000)

+ 6% of $40,000     =    $ 2,400.00 (all income above $225,000

+ 6% of $15,000     =     $   900.00 (income from dividends, capital                                                             gains, interest, profits, and rents)

 Total cost   =   $16,710.00 per year 

(covers all members of household not per individual in household)

THE TAKE-AWAY

The majority of households would pay about 3% of their gross wages toward health care. A smaller number would pay between 3% and 9% of gross wage income and the very top income earners would pay up to 18% on their gross wage income. And just as the payroll tax is now divided 50-50 between the employer and employee, the health care tax would also be divided 50-50 between employer and employee with the self-employed person paying both the employer and employee share. 

However, it is assumed that employers pay lower wages to compensate for their share of the payroll taxes. In effect, the worker pays for the entire payroll tax. Therefore, the calculator adds the the employer contribution to the employee contribution and uses that total as the employee's percentage for the healthcare tax contributions. And because self-employed persons pay both the employer and employee contribution, the calculations work for both self-employed and employed people.

Additionally, a small tax of about 0.5% on stock trades and 0.01% tax per year to maturity on transactions in bonds, swaps, and trades would be assessed.  This additional tax on these types of financial transactions is included in the formula because many in the top income bracket make large parts of their income from non-wage income rather than wage income. This additional tax makes the formula more fair by capturing revenue from both wage and non-wage sources of income. This transaction tax applies to all income levels but in reality will mostly effect those in the top 5% income bracket. 

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