A tax for the unvaccinated, for better results

Premier Legault’s recent musings about a “health contribution” for the unvaccinated have sparked cries of outrage among those who see it as an attack on freedom or who doubt its effectiveness. But a tax on the unvaccinated is no different from other ways to encourage healthy choices — and it could help end the pandemic.

COVID-19 is a highly contagious disease. Vaccines — with third booster doses — not only reduce the risk of infection for those vaccinated. They also reduce transmission of the virus to other people.

Vaccination is therefore a form of behavior beneficial to society. By refusing vaccines, people are likely ignoring the health risks their decision imposes on others. And they’re probably also unaware of the costs they’ll impose on our public healthcare system if they become infected.

A tax for the unvaccinated would cause them to consider the costs they impose on others and make the right choice for society as a whole, instead of taking advantage of the fact that the majority of us is vaccinated. This, in a nutshell, is the economic rationale for a tax on the unvaccinated.

The social benefits of vaccination are considerable. In a recent study, we estimate that for every 1,000 new cases of COVID-19 among the unvaccinated, between 400 and 800 more people will be infected, and even more as social distancing and other restrictions are lifted. This will lead to additional hospitalizations and deaths, as well as thousands of lost work days due to illness and self-isolation.

In total, we estimate that every unvaccinated Canadian imposes at least $1,500 in costs on their fellow citizens each year. A $1,500 tax imposed on those who have not had three doses of an approved vaccine would help people make the right choices for themselves and others.

pay the cost

The Canadian Civil Liberties Association, among other critics, called a tax for the unvaccinated “a measure that will end up punishing and alienating those who perhaps need protection the most” and a “deeply troubling restriction.” […] rights protected by the Constitution”.

But a tax, unlike compulsory vaccination, would preserve individual rights. Canadians would be free to remain unvaccinated as long as they were willing to pay the true cost. And no one would be denied medical care or forced to pay for such treatment, regardless of their vaccination status. The Canada Health Act would therefore be fully respected.

Vaccination resistance can stem from misinformation, community pressure, or a traditional distrust of science and government. Although these reasons seem irrational to most of us, we should fight the fear of the vaccine in the least coercive way possible. Compulsory vaccination could be a coercive measure, and in any case, one probably does not need 100% vaccination to obtain herd immunity against COVID-19. A tax for the unvaccinated would partly solve our public health problem, while allowing those who pay the proposed fine not to be vaccinated.

A tax for the unvaccinated is designed to protect the health of others, unlike proposed taxes on soft drinks and sugary foods, which primarily affect our own health. Moreover, the proposed annual tax of $1,500 would be much lower than what many smokers already pay in cigarette taxes.

Vaccine hesitancy appears to be more common among Black Canadians and lower-income populations, raising equity concerns. But so is smoking — and that hasn’t stopped governments from taxing it at high levels. And for good reasons.

According to a recent survey, more low-income Canadians than others indicated that a financial incentive could lead them to accept vaccination. If so, low-income people would suffer no tax burden from the tax and they would simultaneously enjoy all the benefits of vaccination. So a tax for the unvaccinated could be a boost leading to better outcomes for all.

Now in its third year, the pandemic has been devastating to our health and our economy. Due to new variants and waning immunity, a continuous vaccination program will be essential in the years to come. A tax for the unvaccinated would put the social costs first in the minds of Canadians, and it would benefit us all.

To see in video


source site-40