I disagree with the characterization of even tax treatment as "income redistribution". Why shouldn't every citizen who pays taxes get the same deduction, and what is "redistributing" about saying that a tax deduction will only be available for the first X-thousand dollars you spend on your health care insurance?
Most everything I buy for myself, I buy with post-tax dollars. When the government gives tax breaks, sure I'll use them, but they smack of social engineering, trying to bribe me into doing what THEY want.
For example, you can get a tax deduction for buying a hybrid care, but not for the full price, only for part of the cost of the car. And only the first 80,000 sold by each manufacturer, so they aren't encouraging people to OWN the cars so much as paying off each manufacturer when they get around to MAKING the cars, by making it easier for people to buy them.
But it's hardly income redistribution because the guy who buys a lexus hybrid gets a $3000 deduction on a $40,000 car, and the guy who buys a civic hybrid gets the same $3000 deduction on a $20,000 car.
So why is it "redistribution" if one person gets a $10,000 deduction for the $10,000 they pay for a bare-bones health insurance policy, and another person spends $20,000 of their money for a top-notch health insurance and gets to deduct $15,000 of that cost?
Let me illustrate another way. Suppose I pay $15,000 for insurance that includes dental, but doesn't cover braces. So I pay $6000 in after-tax dollars for the braces, which means I had to earn $9000 to pay or it after giving government their 33%.
Another person buys a $21,000 policy that fully covers braces. They only had to earn $6000 to pay for the braces, because their 6000 from an employer-sponsored health care benefit was pre-tax dollars.
Under the president's plan, both people will now get the SAME TAX BREAK. That's not "income redistribution", that's actually TAX FAIRNESS.
And I say this as someone who is quite likely to be paying taxes on my health care benefits.
Very well put!
Under the president's plan, both people will now get the SAME TAX BREAK. That's not "income redistribution", that's actually TAX FAIRNESS.
Read my other comments posted. I'm tired of explaining what should be obvious.