Assuming we've set the tax rates "appropriately" whatever that means, so that every citizen is properly taxed in a fair and equitable way, and all government is properly funded.
Now, let's say we want government-run health care. So government defines what should be provided in health care, and offers people tax deductions if they buy the government-preferred care. Of course, that means some people are now paying less than their "fair" tax. And we have to raise taxes on everybody to make up for the lost revenue.
So now government is dictating health care, and taxing everybody in order to pay for the health care of people who use the government-approved system.
Hey, it's socialized care, and it's almost exactly what happens today with the deductions for employer-sponsored health care.
You can't just cut more people's taxes. The government is not running a surplus. If you are arguing that the tax deduction for health care is a better government expenditure than something else, and that we should therefore cut OTHER spending instead of the tax deduction, I will be happy to hear what should be cut, and maybe you WOULD find something better.
But the argument that government should spend MORE of my tax dollars to bribe people into certain expenditures is not my idea of good fiscal conservatism, or good policy.
if you are asking me how I would fund the tax credit for people who pay for their own health care - to level the playing field as you say (which I support).
I'll answer you directly - raise the federal tobbacco and alcohol taxes. That's alot better choice then to open a can of worms and start taxing employer provided benefits.