Alternate funding options exist for universal health care


With some Senate Democrats balking at the proposed income-tax increase on high-income Americans to help pay for universal health care, the door has been opened to alternative funding strategies.

And lest investors think that alternate funding strategies do not exist, here are a few:

  • A tax to pay for the Iraq and Afghanistan wars. The Iraq War has cost roughly $667 billion, the Afghanistan War about $222 billion. Each defense expenditure has been passed without a tax increase, so it has added to the national debt, and the nation's interest costs. The total costs including interest will likely exceed $1.2 trillion (and probably far more, depending on the length of each operation). Pass a $1.2 trillion tax increase to pay for the wars, and the U.S. will free up money to essentially pay for universal health care.