Bernie Sanders recently released his Medicare For All plan……Which is an entire 8-page whitepaper that as far as I'm concerned opens up more questions than it answers.
Trying to find more information on the policy, I stumbled upon HR 676, found here:
Upon reading it, it would appear that this is the inspiration behind Bernie Sanders Medicare For All. There are a few discrepancies, but those discrepancies might just be talking points that Sanders has not brought light to yet.
Upon reading HR 676, I found something that scares me and opens up one *HUGE* question I've got on Sander's Medicare For All. In HR 676, freelancers, self-employed individuals and everyone filing tax form 1099 would have to pay the 2.2 individual tax increase, as well as the 6.2 employer tax increase.
So, does Sanders plan mimic HR 676 when it comes to self-employed individuals? Will have freelancers be taxed an additional 8.4%?
Bernie Sanders has not commented on this, as far as I can tell. I have not seen any resources on it, any media coverage or any rhetoric at all. Google brings up nothing on the matter.
This is a question that every freelancer should be concerned about. Many freelancers are doing great, wonderful even. There are many more that are just sneaking by on each job. For those that are just getting by, this could break them.
If anyone has any information on this, I would love to know. This really concerns me.
Wow, the number of likes tells me where people stand on freelancers……
Here’s an idea. Move to a nice area in Europe on the lower-tax side.In
Europe you DON”T pay “federal income tax” (there is no federal income tax
over there).And most taxes are imposed on food, energy etc – so you won’t
feel that you are paying more taxes than others.Easier socializing too. Oh,
by the way, in Europe a 1099 guy also received unemployment income if you
lose yours.In the UK, you won’t pay taxes as a new small company for 5
years. So…My experience (even from Europe) with politicians elected by
students, is catastrophic. It’s not only you – Bernie lies, his taxes will
be double than what he says.
+Nathan Hammond Only certain areas in Europe are worth it. The majority
will impose terrible taxes on you.
I do not know how things are in Mexico. Depending on your clients and how
flexible they are, search the tax code and consider alternative titles for
what you do.
At any rate though: you’ll pay more taxes in Europe unless you do your math
on cost of living and “how well you can hide income from the US”. But you
have to go there. 99% of reality is hidden from the internet posts on taxes
and cost of living (and living conditions).
Mexico, I do not know.
+Nathan Hammond And of course do not listen to any political party
supporters. Not at all. You’ re wasting precious seconds and minutes – do
your own on-site research. Forget “internet tables on cost of living”.
Example:
A small Honda costs $45,000 in Denmark because it has an 180% initial
registration cost. Then you pay $400-$600 per year sticker, and $9
gallon/gas. (Hence the bicycles in the winter). You won’t see that in any
cost of living tables.
+Nathan Hammond I would not do internet research, it’s BS. I would go
there. For example, the internet will tell you that your income tax in
London is lower, but won’t tell you about the TV tax (for owning a tv), the
window tax, the movable property taxes, other fees etc.
GO there. Ask the locals and authorities and write down the numbers.
As far as moving to Mexico, I’m seriously flirting with this idea as well.
Merida is nice, cost of living is very low if you have dollars.
Taxes won’t matter if you live in Mexico or Europe, and you work for
American companies, BECAUSE AMERICAN COMPANIES DO NOT SEND 1099s ABROAD.
I know lots of Freelancers in Europe working “tax free” with US companies,
because nobody knows what they’ re making (no 1099s).
American freelancers will be in the worst fate in the Western World pretty
soon.
+Lefteris Kritikakis That’s interesting. What countries in particular?
I’ve played around with the idea of shooting south of the border. Mainly
because of the exchange rate.
Like Nathan said, he receives more income in lieu of benefits. Ergo, he has
to pay for the benefits himself instead. That means that 6.2% should
already be included in his wages which he would then have to allocate to
this new tax, meaning the company paying for his services would essentially
pay this tax. Right?
Regardless, even at 8.4%, that’s only $4-5k for health care and no
deductibles or copays on say $60k income (less deductions which won’t
really change), and that’s regardless of family size. Personally, I’m an
employee, single with no kids, and my total premium between my contribution
and my employer’s is $5500, plus $3200 deductible, plus $3000 more in max
out of pocket, totaling $11,700 before my insurance starts kicking in
substantially. I’d much rather pay $4-5k in taxes than $11-12k in premiums,
deductibles, and copays, and I’d much rather have that cost certainty for
budgeting purposes as well. And if this plan truly saves companies so much
money, perhaps I’d even see bigger raises. One can dream :)
Private health insurance is expensive. We’ve spent 3 trillion in 2014 for
healthcare. Doctors spend 2/3 of their time doing paperwork, people are on
high copayments and deductibles. A government run healthcare system is
simply way more effective. You go to the doctor, you say whats wrong, you
show your insurance card, he looks at it, gives you treatment, prescribes
you medicine you can purchase subsidized by the government and then it’s
done. Contrast that to private insurance, call the doctor, tell your
insurance, explain in detail where the incident has happened, find someone
who’s responsible for your injury, open a case to make that person liable,
look at your insurance policies, see what can be done, write bills for
stuff that needs to be done, get treatment, get extra bills and then you’re
done. By default single payer system is cheaper than the current private
healthcare.
+Andres Luedeke On how it works on veterans, it has turned out to be a PR
disaster for the government. It’s not that easy here, everything is
different. They go ahead and expand things on paper when there aren’t any
doctors around. And premiums skyrocketed (obamacare is private insurance,
not public), that’s why the dems lost congress. In many cases of middle
class families, premiums doubled with no additional benefits.
Another example, do you know that freelancers in the US do not get any
unemployment income if they lose their practice? unfair, right? considering
that they pay double the payroll tax (!).
Things in the US are not what they are in Germany and when a president here
says “if you like your plan you can keep it” (it was a lie), or “6.2% tax”
(conservative estimates from actuaries say it should be 14-16% to cover the
current US population…).
They tried Universal in Vermont (Bernie’s State), and guess what.. it
failed even on paper (!). Read:
https://www.bostonglobe.com/business/2015/01/25/costs-derail-vermont-single-payer-health-plan/VTAEZFGpWvTen0QFahW0pO/story.html
+Lefteris Kritikakis Obamacare has done some good things such as extending
Medicaid and change some bills such as pre existing conditions. When
Obamacare was written the major hospitals and private Insurance companies
were sitting in the room drafting with them the bill and getting some sweet
deals out of it. Now you can imagine why Obamacare sucks, why Clinton is so
in favor of keeping it. As I said, get private insurance companies out of
healthcare to end this corruption. Germany and other countries are good
examples on how it can be done, Bernie’s plan will work as well, since it’s
working for elderly, veterans and disabled already. All he’s doing is
taking Medicare and expand it to every person in USA.
+Andres Luedeke You can’t imagine the number of cases in court to
re-negotiate child support nowadays, because Obamacare sucked the cash dry.
Just imagine with Sander’s plan – so long generous child support, no money
left! (currently 20% for the first child – kiss that goodbye)
+Lefteris Kritikakis that’s another issue you’re right, spending billions
and even trillions on military where only 5% is directed at ISIS. That’s
because the defense industry doesn’t need to provide any information where
that money is going to so basically they can keep pushing for more money
without justification. The lobbyists just as with private insurance and
pharmaceutical and oil industry have all their hands in the government,
making sure they keep the system.
+Lefteris Kritikakis ahhhh my apologies might have skipped a word. Well do
you have more money? Of course you earn more, lower taxes, but when you
have a family having to pay healthcare for all, University for your kids,
is it cheap? Not to mention always compare quality not just price. If
you’re going to whole foods or trader Joes you’ll find quality food to be
even more expensive than in Germany for example. When I was traveling
around the grand Canyon year paying 100$ per night for hotels I received
toast with creme cheese on a plastic platter. That’s not quality and also
not cheap.
The old vote literally Trumps the college vote
+zarAK471 Me too, but I really don’t think so.
+Nathan Hammond I hope you are wrong..
+zarAK471 I disagree my friend. There’s a reason why Democrats win big
during Presidential election years and why Republicans win big during every
off election. It’s because the college kids get mobilized. They don’t
really follow politics closely enough during the off years.