Archive for the ‘Tax Policy’ Category

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When could taxing health care benefits be a good idea?  If it would achieve the objective that the tax exemption is not able to achieve – universal coverage..

Admittedly, in my last post I offered a knee jerk reaction to the idea of taxing health care benefits.  I distrust the motives of those who single out the income tax exclusion for health care benefits.  Yes, it is a big number, but not compared to the alternative of footing the entire health care bill.

Why a tax exclusion for health care benefits?

The objective of any tax relief or penalties is (or should be) to promote a larger social purpose.  Providing health care coverage certainly meets that test.

Most of those touting an end to the tax exemption for employer sponsored insurance are more interested in raising revenue at the expense of working people than they are in expanding health insurance coverage.

In weighing the merits of the tax policy, at least two questions need to be addressed:

Is the goal achieved?

Is it cost effective?

Given the 40+ million uninsured in this country, the answer to question one has to be an emphatic “no”. Continue reading ‘Tax My Health Care Benefits? Let's Talk’