Hillary Clinton's campaign has been charging that Sanders' health care vision necessarily entails higher taxes on the middle class. Sanders plan is structured to try to avoid that accusation — levying its payroll tax on employers rather than employees and calling its 2.2 percent flat income tax "premiums" rather than a tax. But in effect, working people — whether wealthy or not — will be paying higher taxes. The Sanders camp's real argument is that, all things considered, the average family would save money.
Friedman finds that a typical family of four with wages of $50,000 and an employer health-plan with $4,955 in annual premiums and a $1,318 deductible would pay only $466 through the new 2.2 percent tax, and save $5,807, or 12 percent of income, on net. Friedman also finds that an employer paying $12,591 toward an employee's health plan would pay $3,100 in the new 6.2 percent payroll tax, and save $9,491.