Reforming the U.S. Health Care System
Table of Contents
- Introduction
- I. Universal Coverage
- II. A Health Care Safety Net For The Uninsured
- III. Tax Fairness
- IV. A Rational Role For Employers
- V. Preserving Employer Options, But Rewarding Good Choices
- VI. Incentives To Reduce Waste And Inefficiency
- VII. Options For The Self-Employed
- VIII. Solution To The Special Problems Of The Uninsured
- IX. Health Insurance And Workfare
- X. The Role Of State And Local Governments
- XI. An Alternative To Medicaid
- XII. Funding Reform
III. Tax Fairness
A. Providing, For The First Time, Just As Much Tax Relief To Individuals Who Purchase Their Own Health Insurance As Is Provided TO Employer-Sponsored Plans
- Under the current system, employer payments for health insurance are excluded from the employee's taxable income -- cutting the cost of health insurance in half for some middle-income families.
- By contrast, individuals who purchase their own health insurance must do so with aftertax dollars -- forcing some people to earn twice as much before taxes in order to purchase the same insurance.
- This plan will provide the same tax relief to every taxpayer -- regardless of how the insurance is purchased.
"Low-income families would receive just as much tax relief as high-income families."
B. Providing, For The First Time, Just As Much Tax Relief To Low- And Moderate-Income Families As Is Provided To High-Income Families
- Under the current tax exclusion system, those in the highest tax brackets get the most tax subsidy for employer-provided health insurance -- the top 20 percent of families get six times as much help from the federal government as the bottom fifth.
- Under this plan, every family will get the same tax relief -- regardless of the family's personal income tax bracket.
