Monday, September 17, 2007

Clinton Proposes Limiting Healthcare Deduction

"Making the Employer Tax Exclusion for Healthcare Fairer: The plan protects the current exclusion from taxes of employer-provided health premiums, but limits the exclusion for the high-end portion of very generous plans for those making over $250,000."
-courtesy of Ezra Klein.

This is a good first step but it is all too modest. There is little sense in the health care exemption. By having one it simply necessitates higher marginal rates for the same people that are most likely to benefit from exempting health care from income taxes. How about we just get rid of the exemption and reduce marginal rates by the amount of revenue gained by getting rid of the exemption?

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