Tax credits are a massive new entitlement that just further distort the already distorted healthcare market.
It is a mistake that we have tax deductibility for employer provided insurance, as that distorts the market as well. But there is no difference between tax credits and outright subsidies. That only compounds the error with how employer provided insurance isn’t taxed as the regular compensation that it should be taxed as.
The result of that has been to create massive third-party inefficiencies that remove market signals and price discovery from the healthcare market. That your employer deducts it is, however, something completely different and right—that is deducting a business expense so they just pay taxes on their profit.
I think that there are a LOT of people out there that support this. That's why I think it's likely to stay. Regardless of whether it's the best path or not.