Tag Archives: transportation subsidies

No Such Thing as a Free Lunch

By Dom Nozzi

One of my cousins, on Facebook (FB) in the spring of 2020, responded to a post I had made to FB recently. My post noted that several developed countries in the world had zero people without health insurance, while the US had 30 million without health insurance.

She responded by asking for a “Show of hands – who wants to pay 50% or more of their income in taxes??? Bernie [Sanders] is proposing American taxpayers pay 72% of their income so we can have FREE healthcare- even for ILLEGAL IMMIGRANTS, free college, free, free, free- nothing is free – it all gets paid for somewhere…”

I responded to my cousin by saying that with all due respect, my partner and I believe my cousin needs to check her numbers.

I went on.

What you mention sounds like the distorted corrupt corporate media narrative (a media hugely funded by Big Pharma and Insurance companies). Our understanding: What Sanders proposes is that we go back to the Good Old Days of, say, the 1950s for our tax structure. Then, taxes on those making up to about $30K a year would pay, say, 15 percent in taxes. Those making $30-60K a year would pay, say, 30 percent in taxes on the money they make over $30K. Those making over $60K a year would pay, say, 55 percent in taxes on the money they make over $60K.

In other words, lower and middle-income folks would not see much of an increase in taxes.

Putting aside taxes, how about if we build one or two less F-16 fighter jets? How about if we fight one or two less endless wars of aggression (wars, by the way, that create two people who hate the US for every one US hater we kill, which helps induce the endless warfare cycle). How about if we build one or two less aircraft carriers? How about if we widen one or two less highways? Doing these no-brainer things would mean we could have universal health care (like all other developed nations on earth) and free college for all (and build a desperately needed national passenger rail system) without the need to raise taxes.

I agree with you, by the way, that it is unfair to provide free education and free health care to illegal immigrants. Shame on Democrats for not acknowledging that. Shame on Democrats for apparently supporting open borders and no real restrictions on immigration. That is not sustainable nor is it good for the US.

One last thing: I agree with you that nothing is free (someone, somewhere is paying for “free” things). That is why I’m sure you would agree with me that we should eliminate the biggest form of welfare subsidy by far in America: Free parking and toll-free roads. Those “free” parking spaces and “free” roads are being paid by someone. They are not actually free. As someone who has spent 40 years academically and professionally in transportation planning, I can say with certainty that gas taxes pay only a tiny percentage of those road and parking costs. The vast majority of those costs are paid indirectly: We all, for example, pay higher prices for groceries (including those of us who shop by bicycle or bus) to pay for those “free” parking spaces at the supermarket. We all pay higher property and sales taxes to pay for those “free” roads. And we all pay for those “free” parking spaces and “free” roads with enormous externalized costs such as air pollution, degraded public health, unaffordable sprawl development, noise pollution, tens of thousands of annual traffic deaths, strip commercial blight, etc.

In sum, thank you for pointing out that there is no such thing as a free lunch. I agree with you.

To answer your “show of hands” question, I very much DO want what Bernie Sanders proposes. As former Supreme Court Justice Oliver Wendell Holmes, Jr. once said, “I like to pay taxes. With them I buy civilization.” (and as I pointed out above, the Sanders ideas do not necessarily require that taxes be raised, and if they do, not much at all unless you are quite wealthy).

Oh, and I cannot let this be unsaid: There are HUGE hidden societal costs associated with having roughly 30 million Americans without health care. The numbers I’ve seen put those costs in the trillions of dollars. We cannot afford to have 30 million people without health care.

 

 

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