House Proposes a Value Added Tax for Health Care
Erica Werner reports that the House is open to funding health-care reform through a small value-added tax (though I find the phrasing -- "of up to 1.5 percent, or more" -- a bit confusing). Jon Cohn is pleased. I'm not, for reasons I outline here.
I'd be very interested in funding a new, efficient health-care system through a serious VAT, along the lines that Len Burman or Ezekiel Emmanuel have suggested. But a health-care reform that's not willing to make major changes to the system probably should not impose major new taxes on the population. More ambitious revenue proposals also require a more ambitious health-care plan. You need the strength of the latter to sell the former. And I don't think what's under consideration cuts it.
June 19, 2009; 1:13 PM ET
Categories: Health Economics , Health Reform
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