NCPA Applauds Health Care Tax Credit Plan
July 21, 2004
NCPA Experts Call Rep. Hayworth’s Plan a “Significant Step”
WASHINGTON (July 21, 2004) – House Ways and Means Committee member Rep. J.D. Hayworth (R-AZ) has introduced legislation to create a tax credit to purchase health insurance, a plan that is modeled after President Bush’s tax credit proposal.
“Rep. Hayworth’s plan is a significant step in the right direction for health care in the U.S.,” said NCPA President John C. Goodman, who has been called the “Father of Health Savings Accounts” by The Wall Street Journal and National Journal, and was one of the first economists to promote the creation of health care tax credits.
Rep. Hayworth’s plan is a companion to Senate Majority Leader Bill Frist’s (R-TN) proposal, both of which are supported by recent NCPA research:
An estimated 2 to 6 million uninsured Americans can take advantage of these health care tax credits, providing tax relief similar to the tax subsidy for employer-provided insurance. http://www.ncpa.org/pub/ba468/
Refundable, advanceable health care tax credits also will help more than 8 million Americans who have less than adequate non-employer insurance, and will minimize “crowd out” of subsidized employer coverage; in fact, the expected impact is that tax credits will substantially expand health care coverage. http://www.ncpa.org/pub/ba415/
“Health care tax credits provide tax relief for people who need health insurance,” Goodman added.