If we had universal health insurance, what would the tax rate need to be? $50 copay, variable drug copays, $10k family out-of-pocket max. Flat tax on all gross earned income over $30k and on interest, dividends and investment income, etc, no cap.
As for the tax rate, what you probably don’t realize is that it’s already “way the heck up there”, and the lower your income, the higher the percentage is.In 2021. the average premium for single coverage is $521 per month, or $6,251 per year. The average premium for family coverage is $1,462 per month or $17,545 per year.If you’re making $18k a year, that’s roughly a 30% “tax” rate for an individual plan. The more you make, the lower the percentage.But, because it’s paid directly by your employer to the insurance company on a tax exempt basis, it’s not listed on your pay stub. What you do see on your pay stub is take come pay that’s $6k a year lower to cover the cost. Healthcare is a significant contributor to flat wages.In the USA we currently spend around $10k per person on healthcare. Again, that’s what we spend NOW, and that average includes people with little to no insurance as well as people with the most costly insurance, known as Medicare. The uninsured total is down to roughly 11% of the country thanks to Obamacare.In Canada, they currently spend around $7k (Canadian) per person. Everyone has insurance.Under Obamacare, insurance companies are required to spend 80% of premiums on care. So, that’s 20% lost to profits, advertising, and the overhead of limiting the amount paid for care as much as possible. Take that out of $10k, and you have $8k. That’s pretty close to Canada.There’s also the overhead for doctors and hospitals related to getting the amount paid for care to be as high as possible. Take most of that out with simplified billing, and you’re even lower.In other words, if we had single payer healthcare the savings in claim processing costs alone would reduce the cost of healthcare more than the cost to expand it to cover everyone AND lower “taxes”, if by taxes you include the amounts paid by employers.What would REALLY shake up the health care debate would be requiring health care costs to be visible on pay stubs, broken down in the same manner as take home pay. Per hour, or salary as appropriate. Then people would see why they haven’t gotten decent raises for the last couple of decades. Turns out they did, paid in the form of health insurance.So, as far as your question, while the exact numbers would need to be worked out, the answer is “less than now for most people”. For the poorest, a lot less.