Tennessee Guerilla Women [1] has a post by Paul Krugman [2] on the health insurance proposal Bush has been discussing lately.
While proposing this high-end tax break, Mr. Bush is also proposing a tax increase - not on the wealthy, but on workers who, he thinks, have too much health insurance. The tax code, he said, "unwisely encourages workers to choose overly expensive, gold-plated plans. The result is that insurance premiums rise, and many Americans cannot afford the coverage they need."
I'm always afraid when people with no clue try to come up with solutions to important issues. I heard part of this proposal discussed on the radio today, i.e. tax people paying more for health insurance. I wonder if they realize some people have to pay more just to get some basic coverage because they are identified as uninsurable by health insurance companies. Who will determine the definition of a "gold-plated plan"?
Oh, Thoughts of an Average Woman [3]has the scoop on "gold-plated plans".
Bush wants to cap how much a family or individual can pay for a health insurance policy.
It would work like this: The administration would cap the amount of benefits that can remain tax free at $15,000 for a family and $7,500 for an individual. Anyone whose health insurance cost more than that would pay taxes on the difference. For example, a family with coverage costing $16,000 a year would pay taxes on $1,000.