The President plan is not income distribution but rather a tax cut and it is the ultimate free market capitalism.
You really need to read about the plan, because it is indeed income redistribution. Those with good health plans will be taxed on any amount over the set amount the GOV'T sets ($7,500 for a single, about 14,500 or so for a family). Then, that money will be used to finance tax breaks for those with no or poor health plans so they can go out and buy their own. But it's on the backs of those who have done well in their life's work and therefore will be penalized for having a good health insurance plan. Think about this. Tell me how it isn't income redistribution, using the IRS tax code to do it.
I'll try a different way.
An employer-supplied plan can be treated as if the employer pays you a larger salary, and then you get to pay the full cost of insurance with your after-tax income. Right now though, the government lets you deduct the entire amount you pay for the health care plan, so long as you buy the EMPLOYERS plan, but not if you opt out of that plan and buy the one YOU want.
Under Bush's plan, little will change, except the government will stop "incentivising" you with tax cuts for any amount over $15,000 that YOU CHOOSE to spend for a health care insurance plan.
They will use the money they save NOT giving full tax breaks, to give tax breaks to those who either CHOOSE to opt out of their employer plans, OR who have no employer plan, and instead purchase their own health care plan.
Purchasing your own health plan is better for the system, because you get to choose what YOU want, and haggle over the price, while your employer has a different motivation.
But in any case, this is no more an "income redistribution" then limiting the income tax deduction for home mortgages to a million dollars.
Income taxes are progressive, and therefore DO redistribute income. special tax breaks for favored acts are a way for government to unduly control our lives, and cutting the amount that happens is a good thing. Of course, what we WANT to happen is for that money to be put back into other forms of tax relief, preferably across-the-board tax cuts. But offering to the people without employer-sponsored health care the SAME TAX DEDUCTIONS which are now available only to a privileged few is a rational government policy. Giving everybody the same tax deductions is not unfair redistribution of wealth, it is simple fairness.