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A Standard Deduction for Health Insurance: Something New under the Sun?

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B-339 Rayburn House Office Building
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Featuring
Featuring Katherine Baicker, Member, Council of Economic Advisers; Leonard Burman, Director, Urban-Brookings Tax Policy Center and co-author of “The President’s Health Insurance Proposal — A First Look”; and Michael F. Cannon, Director of Health Policy Studies, Cato Institute, and co-author of Healthy Competition: What’s Holding Back Health Care and How to Free It.

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In his State of the Union address, President Bush offered a new proposal to restructure the tax incentives that the federal government creates for the purchase of health insurance. Are proponents correct that the proposal would make coverage more affordable for the vast majority of workers, cover an additional five million people, and force the health care sector to produce higher-quality care at lower cost? Or are skeptics correct to say it would increase taxes, end employment-based health insurance, and leave sick workers with no coverage?

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