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Running out of other people’s money: The state senate of California today passed a single payer health plan, essentially proposing to take over the health industry in that state.
It is estimated that the proposal will cost California $400 billion per year, which is
twice more than three times that state’s annual budget. A Massachusetts study claims the government health plan can be paid for by adding additional taxes, including 15% payroll tax, but I am exceedingly skeptical. When have any of these kinds of studies ever correctly predicted the true cost of a government program? In truth, never. The cost is always higher than predicted, and the revenues raked in by taxes always less.
The article at the second link about the study has this interesting tidbit about the typical California voter:
The first-ever question to Californians on the topic by the Public Policy Institute of California shows that the vast majority of state residents were in favor of a universal, government-run health care system — as long as it doesn’t raise their taxes. But the prospect of paying the government for health care through new taxes caused support for the proposal to fall from 65 percent to 42 percent.
Another poll, commissioned by the nurses’ union, found that 70 percent of Californians were in favor of a universal, single-payer health care system — a percentage that dropped to 58 percent after those surveyed heard arguments from the opposition about the cost.
In other words, Californians want this stuff given to them, for free. They are living in a fantasy world, which might explain the behavior of their government, dominated by pie-in-the-sky Democrats.
Despite this, I expect California to pass this bill, and then find they can’t pay for it. They will then demand that the U.S. government bail them out.