Albany, NY— The tax hike needed to fund a statewide single-payer health plan would be the largest in state history and would have unpredictable and potentially harmful effects for the entire state. state’s economy, according to a new report from the Empire Center for Public Policy.
The report analyzes the tax implications of New York’s health law, which would convert all residents of the state into a single state-run, taxpayer-funded health plan.
Although the legislation lacks specifics on how much the proposed plan will cost or where the money will come from, it is clear that it would push New York’s already heavy tax burden to unprecedented heights.
Based on available cost estimates, the report finds that New York’s combined state and local tax revenues, which are already the highest of any state, would nearly double to more than $17,000 per capita. , three times the national average.
The top marginal tax rate would rise to around 36%, increasing incentives for tax avoidance among high earners and higher earning companies.
The document also warns that health care funding would become more vulnerable to economic booms and busts, and that rising medical costs would create pressure for further tax hikes.
“The New York Health Act requires a tax hike massive enough to disrupt the state’s entire economy, but the bill’s authors have provided none of the details necessary to fully analyze the impact” said report author Bill Hammond, senior researcher for health policy at the Empire Center. “It should be unthinkable for lawmakers to adopt a single payer without clearly indicating what it would cost and where the money would come from.”
Read the full report here.
The Albany-based Empire Center is an independent, nonprofit, nonpartisan think tank dedicated to advancing policies that can make New York City a better place to live, work and raise a family.