Part of the problem is that we have a mixed system. Medicare often does not reimburse enough to cover DR and hospital expenses, so they have to charge more to other patients to make up for it. Primary care Drs limit the number Medicare patients they will take on because they lose money on them. My wife's DR moved away and we cannot find another DR who will take her on.
Years ago, the government put a wage and price controls on businesses. One of the results was that employers got around the law by offering like health insurance instead of higher salaries to attract employees. This created yet another tier that gave some people a big advantage, hurting others. If everyone was in the same boat and all the insurers had to compete for customers, prices would come down.
The tax liability for couple #1 seems low. I am retired and married filed jointly and took the standard deduction and have similar a similar income and my taxes were much higher.
$3400 interest
$3900 qualified dividends (not taxed)
$8300 ordinary dividends
$63,000 Social Security (taxable amount $36,800)
$40,000 Pension
-$3000 capital loss
Adjusted gross income $85,000
Tax liability $3690
The standard deduction was $34,700
The over 65 deduction was $12,000
So my taxable income was $38,700
I paid more than couple #2 as well.
Couples 1 and 2 get reduced tax rates on Social Security and also get the $6000/person deduction for being over age 65.
Couple #3 has access to tax savings as well, 401K, IRA, Roths. The example does not show if that couple took advantage of their tax savings opportunities.
While I do agree that income taxes are too complicated, a flat tax with a standard deduction would be OK if it were set at 10% which is the current lowest tax bracket. But what would be even better is eliminate income taxes completely and replace it with a nation sales tax.
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Part of the problem is that we have a mixed system. Medicare often does not reimburse enough to cover DR and hospital expenses, so they have to charge more to other patients to make up for it. Primary care Drs limit the number Medicare patients they will take on because they lose money on them. My wife's DR moved away and we cannot find another DR who will take her on. Years ago, the government put a wage and price controls on businesses. One of the results was that employers got around the law by offering like health insurance instead of higher salaries to attract employees. This created yet another tier that gave some people a big advantage, hurting others. If everyone was in the same boat and all the insurers had to compete for customers, prices would come down.
Post: What do we Americans want? We want “free” healthcare
Link to comment from June 12, 2026
The tax liability for couple #1 seems low. I am retired and married filed jointly and took the standard deduction and have similar a similar income and my taxes were much higher. $3400 interest $3900 qualified dividends (not taxed) $8300 ordinary dividends $63,000 Social Security (taxable amount $36,800) $40,000 Pension -$3000 capital loss Adjusted gross income $85,000 Tax liability $3690 The standard deduction was $34,700 The over 65 deduction was $12,000 So my taxable income was $38,700 I paid more than couple #2 as well. Couples 1 and 2 get reduced tax rates on Social Security and also get the $6000/person deduction for being over age 65. Couple #3 has access to tax savings as well, 401K, IRA, Roths. The example does not show if that couple took advantage of their tax savings opportunities. While I do agree that income taxes are too complicated, a flat tax with a standard deduction would be OK if it were set at 10% which is the current lowest tax bracket. But what would be even better is eliminate income taxes completely and replace it with a nation sales tax.
Post: …..taxes and you
Link to comment from June 12, 2026