If the Supreme Court decides it’s illegal to force people to buy health coverage could the government just side step this completely by taxing everyone the same amount then make health insurance premiums tax deuctable/refundable?
So in esscence you keep your private insurance, pay for it directly with monthly premiums, get taxed around the same amount, then at the end of the year get the taxed amount back.
People who opted not to buy insurance have no way to get their deduction/refund and are forced to still pay for it.
Extending the existing tax deduction to cover non-employer-funded health insurance is a smart idea, and one I’ve argued for in the past. I’m strongly opposed to a full tax refund, though, as it removes all incentive to actually provide a cost efficient product: you can charge whatever you like and the government will force the taxpayers to foot the bill. I’d also object to your idea just on the grounds that the government should not be rewarded for trying to weasel their way out of the obligations of their position.
It’s also possible that this might be the opening needed to set up a public option. Open medicare to everyone. Nobody would be “forced” to buy a thing.
Although I disagree with more intrusion of the government in our lives, this is the way I would do health care if I had to. A low-cost, accept-everyone, basic insurance package with primary care covering all Americans from birth to death paid out of taxes. A tax credit (not a deduction and knowing that the Dems would put an income limit on it) if you/your family has their own insurance and some sort of return of Federal money to a state if they offer a comparable/better package to their residents.
As long as it pays for itself, which it is not currently, I don’t know anyone who would oppose this.
Yes, this is the most obvious way around the problem. But that would have involved a tax increase, and the point of the mandate was to avoid having a tax increase.
And the point of avoiding the tax increase was so that it would pass.
I wouldn’t be surprised if more than a few people helped it pass with the mandate knowing it would eventually be struck down by 5 partisan hacks in long black robes.
Funny, I just offered this exact explanation to someone at lunch today, and I believe one of the SCOTUS justices said precisely that yesterday. But there are not enough Congresscritters with the balls to “raise taxes”. In fact, even Obama tripped all over himself telling us how the mandate was not a tax.
This. At a minimum, this decision, if it strikes down the law, will require Congress to at least call it a tax and a government mandate on health insurance. If that can pass, then we will see if 60 votes can be had in the Senate (it won’t).