Tuesday, December 29, 2009

Linking the Components of Health Care "Reform"

According to M.I.T. economist Jon Gruber, the Senate's tax on cadillac health plans is good policy because it

would reduce the incentives for employers to provide excessively generous insurance, leading to more cost-conscious use of health care and, ultimately, lower spending.
Gruber is right, and virtually every economist agrees. The ideal reform would combine increased taxation of employer-provided health insurance with offsetting reductions in personal or corporate income taxes.  Both changes would reduce distortions in the tax system and allow government to raise any given amount of tax revenue with a smaller negative impact on the economy.

But that does not mean government should expand spending, on health insurance or anything else. That is a logically separate question.

6 comments:

Michael Kitchens said...

You say "The ideal reform would combine increased taxation of employer-provided health insurance with offsetting reductions in personal or corporate income taxes."

A few questions are raised by this statement:

I'd be curious to know how replacing robbery of one kind with robbery of another kind is "ideal?"

I'd like to know how taking by FORCE money from private companies, who VOLUNTARY compensate employees is "ideal?"

I'd like to know how any government intervention in health care would be "ideal?"

For a libertarian, you seem to have a great deal of faith in government fixes and unusually kind things to say about taxes of any kind, and as an economists, you seem to have an usual concern that private companies and private individuals would spend their money less wisely than the State.

I hope you will address these questions soon.

Anonymous said...

Jeff Miron,

As Kevin Grier (Angus) pointed out, Gruber made the claim that any money people get to keep after taxes is just a temporary tax break. Yes Gruber's words were that silly.

He has indeed joined the dark side.

Anonymous said...

win back love -
your software website -
zox pro -
zygor guides -
500 love making tips -
acid alkaline diet -
acne no more -
advanced defrag -
adware alert -
adware bot -
affiliate elite -
anti spyware -
anti spyware bot -
article bully -
art of approaching -
auto pilot profits -
bbq book -
blogging in action -
body building revealed -
burnthefat -
burn the fat -
carb rotation diet -
chopper tattoo -
conversationalhypnosis -
conversational hypnosis -
cure for tinnitus -
debt free in three -
driver checker -
duplicate file cleaner -
earth4energy -
earth 4 energy -
easy member pro -
easy tv soft -
eatstopeat -

Anonymous said...

a> -
acid alkaline diet -
advanced defrag -
alpha male system -
amazing cover letters -
anti spyware -
anti spyware bot -
article rewriter -
art of approaching -
auto cash system -
burnthefat -
burn the fat -
bv cures -
calling men -
camera dollars -
carb rotation diet -
cash making power sites -
cb mall -
combat the fat -
conversationalhypnosis -
conversational hypnosis -
credit secrets bible -
destroy hemorrhoids -
dirty talking guide -
dotcom income secrets -
duplicate file cleaner -
dvd copy pro -
earth4energy -
earth 4 energy -
easy launcher -
easy system cleaner -
eatstopeat -
eat stop eat -
eczema free forever -

Anonymous said...

better search engine ranking
asp.net seo
[url=http://xrumerservice.org/]backlink service[/url]

stop pre ejaculation said...

Thanks a lot for this time sharing about LINKING THE COMPONENTS OF HEALTH CARE REFORM. This is really a nice reading to be sharing.