Correction: the healthcare bill under the early retirement scenario would drop as well: I'd save another $100k total over the 8 years of early retirement because about 1/3 of the health care costs would be subsidized. So the government would be picking up another $100k in costs over the eight years.

Total reduced taxes and increased government costs of pushing one family to retire early: $160k + $800k + $100k = $1m+