Sunday, December 1, 2019

Don't call it "Medicare for all"

Medicare is partially funded by a 2.9% tax on payroll. Participants become eligible for Medicare AFTER about forty years of those non-voluntary deductions.

While not enough to fully fund Medicare, it is real skin-in-the-game for those whose paychecks were diminished by almost three percent.

Lets take a hypothetical person who has some skills. They start with wages of  $40,000 per year and their pay doubles to $80,000 over the first ten years of working. Then their wages stagnate.

If that 2.9% in lost wages had been made available to the employee and they rolled it into an IRA or 401-k, it would accumulate into a tidy sum. By my figuring, a real, 3% average annual return would put $164k in the account by the day they retired.

Don't call the Socialist's plan to control access to heathcare "Medicare for all". It is a straight-up give away.

1 comment:

  1. Off topic for the post, but have you done any more work on re soling your Ozark Trail hikers? I've been thinking about it and wonder if it would work better to approach it like retreading a tire rather than resoling a shoe.

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