- Sep 26, 2000
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In his State of the Union on Tuesday the Bushies have already informed the media he will propose changing the tax law on health insurance.
Currently a business can purchase health insurance for its workers using pre-tax dollars.
However, individuals who purchase health insurance must do so using after-tax dollars (e.g. your net take home pay)
Bush wants to make money spent by individuals for health insurance premiums pre-tax money. In other words you take it off the top of your income tax and you don't pay any tax on this money.
A very fair idea. I support it.
However, if corporations can now just give you the money it used to pay into your health care as income you won't be taxed on, then corporations will have an incentive to just give you the money and get out of the business of purchasing health insurance for you.
While some really stupid right wing pro-consumer choice people will undoubtedly say:
"Whats wrong with that? Shouldn't I be able to spend the money on the health plan I choose"
The reality is three fold. First off instead of actually paying enough for a medical plan that is decent corporations will undoubtedly be able to just increase the health payment to you equal to inflation. Which means that health insurance which is rising at double the rate of inflation will either cost you more money for the same coverage or the same money for less coverage. In a few short years the payment will pay just a small fraction of the health insurance premium.
The second problem is that corporations have educated professionals evaluating and purchasing health insurance. They are experts. Most people don't have a clue. The result will be inadequate or ill concieved coverage.
Thirdly this plan ends the equality of health coverage at corporations. Currently the law states that the corporation can only write off (pre-tax dollars) an amount that provides the same amount of money and coverage to everyone of the corporations employees. If a company wants to purchase better insurance for executives it needs to do that with after tax money. But under the Bushies plan the employee can write off their health insurance premiums regardless of what other people pay. In other words an executive can purchase a health insurance plan that covers massages and stress reduction treatment(paid vacations) in the Bahamas. Don't laugh. Its legal and is being done.
All in all this little change in the tax law will end the social compact between worker and employer.
How long til we all have Wal-mart health care? Not long.
And the reason for doing this is so individuals that don't have health care at work or are self employed can now get health care?
Only those who have a high enough tax bill to save real money by buying health care.
And those people already have it.
So it will add virtually no one to the ranks of the insured but give businesses a way to stop providing health care.
And the new class of barely insured will have to turn to medicaid when they can't afford treatment.
Shifting health care costs fromt he corporations to the government (ie you and me)
Just what Wal-Mart is doing now.
Currently a business can purchase health insurance for its workers using pre-tax dollars.
However, individuals who purchase health insurance must do so using after-tax dollars (e.g. your net take home pay)
Bush wants to make money spent by individuals for health insurance premiums pre-tax money. In other words you take it off the top of your income tax and you don't pay any tax on this money.
A very fair idea. I support it.
However, if corporations can now just give you the money it used to pay into your health care as income you won't be taxed on, then corporations will have an incentive to just give you the money and get out of the business of purchasing health insurance for you.
While some really stupid right wing pro-consumer choice people will undoubtedly say:
"Whats wrong with that? Shouldn't I be able to spend the money on the health plan I choose"
The reality is three fold. First off instead of actually paying enough for a medical plan that is decent corporations will undoubtedly be able to just increase the health payment to you equal to inflation. Which means that health insurance which is rising at double the rate of inflation will either cost you more money for the same coverage or the same money for less coverage. In a few short years the payment will pay just a small fraction of the health insurance premium.
The second problem is that corporations have educated professionals evaluating and purchasing health insurance. They are experts. Most people don't have a clue. The result will be inadequate or ill concieved coverage.
Thirdly this plan ends the equality of health coverage at corporations. Currently the law states that the corporation can only write off (pre-tax dollars) an amount that provides the same amount of money and coverage to everyone of the corporations employees. If a company wants to purchase better insurance for executives it needs to do that with after tax money. But under the Bushies plan the employee can write off their health insurance premiums regardless of what other people pay. In other words an executive can purchase a health insurance plan that covers massages and stress reduction treatment(paid vacations) in the Bahamas. Don't laugh. Its legal and is being done.
All in all this little change in the tax law will end the social compact between worker and employer.
How long til we all have Wal-mart health care? Not long.
And the reason for doing this is so individuals that don't have health care at work or are self employed can now get health care?
Only those who have a high enough tax bill to save real money by buying health care.
And those people already have it.
So it will add virtually no one to the ranks of the insured but give businesses a way to stop providing health care.
And the new class of barely insured will have to turn to medicaid when they can't afford treatment.
Shifting health care costs fromt he corporations to the government (ie you and me)
Just what Wal-Mart is doing now.
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