Data published by the International Federation of Health Plans suggest that hospital and physician prices for procedures were highest in the . in 2013. 10 The average price of bypass surgery was $75,345 in the . This is more than $30,000 higher than in the second-highest country, Australia, where the procedure costs $42,130. According to the same data source, MRI and CT scans were also most expensive in the . While these pricing data are subject to significant methodological limitations, they illustrate a pattern of significantly higher prices in many areas of . health care.
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Therefore, we will report an upper bound and a lower bound on the tax reform, based on the two most extreme possible assumptions regarding current pass-through businesses. At the high end, we will analyze the plan assuming that such businesses pay individual rates of up to 33 percent on their income. At the low end, we will estimate the plan assuming that these businesses pay a 15 percent rate on pass-through income on the individual Form 1040. The former will be referred to as the higher-rate assumption, and the latter will be referred to as the lower-rate assumption.