For over a year now, Chrysler chairman Lee Iacocca has had one goal. No, not building a quality automobile. Iacocca has used his considerable lung power to tell everyone who will listen that the United States should have a national health-insurance system. His not-so-hidden agenda is to cut his company's production costs by foisting the burden of employee health care onto taxpayers. But Iacocca, as is his wont, has forgotten one important fact: Chrysler is a taxpayer.
In a recent study, the Dallas-based National Center for Policy Analysis found that a Canadian-style health-care system would cost the federal government $339 billion annually. To raise this money, the government would have to raise the income tax 14 percent or raise the payroll tax 15 percent. In any event, taxes would go up. For most businesses the increase in taxes would be greater than what they currently pay for health care.
Net Burden of National Health Care Insurance
Industry – Additional Cost Per Worker (Average)
This article originally appeared in print under the headline "Taxing Facts".