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Tax Deductions Superior To Tax Credits For Expanding Health Insurance Coverage

Armen Hareyan's picture

As Congress returns this month, "so does the health care debate,including an important intramural squabble" among Republican lawmakers:"[W]hat is the better way to move to an individual-based insurancesystem -- via a tax credit, or a tax deduction?" a Wall Street Journaleditorial writes. "Nearly all Republicans agree that giving individualsthe same tax benefits that businesses now have for health care is thekey to building a more competitive and equitable insurance market," theeditorial says, but the "dispute is about how to do it."
The Journalcontinues, "We think the tax deduction has the better argument,especially as a matter of tax policy." The editorial concludes, "BothRepublican ideas are preferable to the current slow march togovernment-run health care. But if Republicans want to make thesharpest break with that march, they'll unite around the ... taxdeduction strategy" (Wall Street Journal, 9/5).

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