By NextBestFitProgressive income tax (including capital income)
Fund mostly from a health income tax that also covers capital gains and dividends.
Draft decision:RejectedConfidence: medium · not yet reviewed
Mix chosen.
Review ledgerHow this path connects
Addresses
Replacing premiums with taxesThis path
Progressive income tax (including capital income)
Creates or worsens
No new problems identified.
Concrete changes if chosen
What would actually have to change in law, agencies, payment rules, or systems.
- Enact a progressive health income tax including capital income
Effects
Each effect has its own page: the evidence, the case that it is or isn't a real cost, and whom it affects.
The question it answers
Replacing premiums with taxesAn income-based health tax including capital gains and dividends provides a broad, progressive funding base. High earners pay much more, and the tax may reduce investment.
What it fixes
None identified.
What it creates or worsens
None identified.
Who's affected
Who gains
- Low- and middle-income households
- Replacing premiums with taxes: An income-based health tax including capital gains and dividends provides a broad, progressive funding base. High earners pay much more, and the tax may reduce investment.
Who loses
- High earners
- Replacing premiums with taxes: An income-based health tax including capital gains and dividends provides a broad, progressive funding base. High earners pay much more, and the tax may reduce investment.
Where it has been tried
- Canada, UK: Mostly general revenue.
- United Kingdom: In the UK, government-financed healthcare funded primarily through general taxation accounted for 81% of total healthcare expenditure (£280 billion) in 2025.