Wednesday, November 6, 2019

How Warren pays for MFA

I prefer Bernie saying up front we will have a tax increase for MFA, but overall out health care expenses will be less. Warren's way hides the increase through employers and our wages, which could affect them reducing full-time employment.

"Instead of taxing a certain percentage of an employee’s pay (a payroll tax), Warren’s head tax would charge employers a flat amount no matter the employee’s salary. Seeing as any employer-side tax ultimately comes out of workers’ potential earnings, this is a regressive approach that would disproportionately impact low- and middle-income workers. And not taxing employers who use independent contractors also could backfire in a big way—by giving employers an incentive to reclassify their workers away from full-time status and the ability to get benefits in the first place."

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