A liberal's conservative health plan
(Pardon me if this is too obvious or has already been debated.)
Years ago, before tax laws were changed to put a threshold on personal deductions, all medical expenses were tax-deductible.
I propose making all medical expenses eligible for a tax credit, rather than a mere deduction. A tax credit is like 100% money in the bank, as opposed to a tax deduction, which just credits you with your tax rate portion of an expense. You should be allowed to draw on the tax credit prior to your personal income tax filing, through an estimated tax system similar to what we have now, or through private financing, or through cuts in withholding.
If your medical expenses exceed your tax burden, the tax credit would be a "reverse income tax" situation.
Conservatives like tax relief, and liberals like health care relief, so this is a simple solution that we can all embrace.
Years ago, before tax laws were changed to put a threshold on personal deductions, all medical expenses were tax-deductible.
I propose making all medical expenses eligible for a tax credit, rather than a mere deduction. A tax credit is like 100% money in the bank, as opposed to a tax deduction, which just credits you with your tax rate portion of an expense. You should be allowed to draw on the tax credit prior to your personal income tax filing, through an estimated tax system similar to what we have now, or through private financing, or through cuts in withholding.
If your medical expenses exceed your tax burden, the tax credit would be a "reverse income tax" situation.
Conservatives like tax relief, and liberals like health care relief, so this is a simple solution that we can all embrace.
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But conservatives don't like redistribution of wealth through the tax system in any form, your plan does not contain costs and it imposes impossible bills (a cancer treatment, for instance) on families without immediate reimbursement. You might get around the last part, but you're suggesting what idiots would still call a "government takeover" and the elimination of private insurance. It won't fly any better than what's being proposed, and it would be far worse.
August 23, 2009 2:57 PM | Reply | Permalink
Immediate reimbursement would be provided via an advance through private financing (like payday advances or credit from provider) or a government payment. Paying medical costs is not wealth transfer. Cost-containment should be dealt with in separate legislation or by other means -- that's the issue that's killing reform. Who needs private insurance?
August 23, 2009 4:06 PM | Reply | Permalink