Why do democrats not support tax credits for health insurance?

Question

Universal Healthcare is on the agenda for this next election. However for several years republican and democrats have been trying to come up with a way to pay for healthcare.

At one point it was proposed that all health insurance costs could be written off on your income tax. Thus making it a tax deduction. Hillary Clinton, Obama, and a majority of democrats are against this method?

However they are all for tax deductions for buying a hybrid car. Isn't this a better alternative than trying to implement a system that is not the best method for healthcare?

Answer 1

Can't see why they'd not want to have health insurance costs to be tax deductible. As for rectifying the problem of healthcare access in this country, it seems like a step in the right direction. If people could deduct the cost of health insurance from their taxes it would make shopping around for the best and most affordable insurance a good option, and have the effect of creating a more competitive environment in the industry. As it is, the only way to have that benefit is to take whatever healthcare provider your employer does business with.

Answer 2

No, because tax deductions don't solve the problem. The majority of people that don't have health insurance do not have it because they can't AFFORD it, meaning they don't make much money and don't pay high taxes to begin with.

All the money going to health care companies now would likely pay for universal health care coverage with stronger benefits for three reasons:

1) The HMO's take a 30% cut for profit.

2) If everyone had access to PREVENTATIVE care (check ups, inoculations, etc...), there would be a serious decline in costly procedures later on. It's a lot cheaper to remove an early detected polyp than it is to remove a tumor and start chemotherapy treatment.

3) The health care companies could "decide" not to pay you, because their main responsibility is to the stockholder, not the client. It is their fiscal responsibility as a publicly traded corporation to NOT provide the service you pay for. If you are very sick, they would prefer you die quickly so you aren't a drain on their profits.

At least the government would TRY to help you.

Answer 3

Because a of people don't earn enough money pretax to pay the $10,000 or so a year that family coverage would cost. Single payer would be cheaper, more efficient and would not be a government subsidy for the insurance companies which is what a tax deduction woud be in effect.

Answer 4

Because the standard deduction for a married couple is already 10,300 . . . most people do not have that much in deductions so adding in health insurance costs really does nothing to decrease the tax liability. It's a moot point. Secondly, the people who would be helped by this bill, probably aren't paying enough in taxes to utilize the extra deductions. You can't deduct from what your not already paying . . .

Answer 5

do you know any employers that would cover your insurance if they knew you were getting a tax deduction. I think the employers should get the tax break for all the employee's that they cover under a plan.

Answer 6

Tax credits for private education should also be included .

Hell lets just say that those who pay for there own health care kids education and so forth should only have to pay a 3% tax .

Answer 7

Cars are not a necessity, whereas insurance is...

Simply put, tax credits for health insurance only benefit those with a large enough income to make these credits beneficial.

For many on the lower economic tier, a tax-credit does absolutey nothing b/c they can't afford the insurance in the first place and qualify to get most of their tax money returned, second.

Answer 8

No, that would just further inflate the overcharging that insurance companies do. Your premiums would increase, because the companies would know you could claim it back against taxes. It is an inflationary measure, and not good economic management.

A single-payer medical system overseen by an independent body and operated through agreements with insurance companies would control costs and provide the same benefit.

Answer 9

OMG, you people can not have it both ways! make up your minds! And stop trying to blame us for everything!
From what I've seen, tax credits only serve the interests of people in certain tax brackets!

Answer 10

Bad idea. I would like to see some debate on health reform. But it is unfair to get a small segment of the population to pay for everybody! If someone has an idea that would work, fine. But everyone should have some financial stake in their coverage. Even countries that do have universal coverage pay for it through taxes or premiums on all but the lowest wage-earners. You are exactly right- people are going to get tired of being punished for being successful. They are either going to drop out of the job market or cut back on their hours like I have done.