Anmerkungen:
In: Federal Bar Association Section of Taxation
Beschreibung:
The aim of this paper is to discuss the flaws in the current system of excluding employer provided health insurance from income and to critique various proposals to reform the system. While the tax system may not be the most efficient way to ensure that all or most Americans have health insurance, the tax system is the most politically feasible way for the federal government to get involved in achieving such a goal. In light of this, this paper adopts the thesis that a supplemental system of refundable tax credits whose benefits are aimed at those with low incomes is the best system for achieving the goal of insuring as many Americans as possible. It should be noted that this paper will argue for such a system to work in tandem with the current system. It is simply too risky to completely overhaul a system under which 75 percent of all Americans are insured. This paper adopts the view that reform should build upon existing coverage as opposed to eroding it. Part II will examine the strengthens and weaknesses of the current system of encouraging health insurance through the exclusion of employer provided health insurance from income and will conclude that while reform is needed, the current system should not be abolished. Part III will critique the system of Health Savings Accounts ("HSAs") which the second President Bush proposed. This part concludes that the HSA system is bad policy because it will actually increase the number of uninsured and its benefits are inappropriately aimed at the healthy and the wealthy. Finally, Part IV examines a reform proposal of a system of refundable tax credits - designed to work in tandem with the current system - whose benefits are aimed at those with low incomes. This part argues for such a reform proposal because it will greatly decrease the number of uninsured and because its benefits are appropriately aimed at those who actually need help with purchasing health insurance