Tax Deductions Superior To Tax Credits For Expanding Health Insurance Coverage
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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