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Taxing Health Insurance PDF
By:Charles E. Phelps
Published on 1983 by

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Sweeping changes in tax law would produce tidal waves--not ripples--in affected sectors of the economy. Health insurers would lose large amounts of their business. Changes in medical use would be considerable, affecting doctors, hospitals, and every type of medical supplier. How this would affect the health of us all is as yet uncertain. Is the United States ready for serious tax reform in health insurance premiums? Many people would see the immediate personal financial damage from sweeping tax reform. Yet, considering the budget deficit facing the Congress and the President, and the alternatives recently under consideration (cancellation of the 10 percent income tax cut, surtaxes, or the effects of a $200 billion deficit on the economy), the taxation of health premiums may not be so undesirable. The issue is not whether the choice is painful, but whether it is less painful than the available alternatives.

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