"Bush's plan is similar to the Clinton scheme to tax people on the "imputed income" they would receive if they rented out their houses."
No it is not.
When an employer pays for your health insurance, that is compensation. Basically, it is the same thing as if the employer gave you the money as wages and you used it to buy health insurance. Under current tax law, it is not taxed.
However, Clinton was advocating phantom income where no money changes hands. That is totally different and absurd.
What Bush is advocating is a step in the right direction of lowering health care costs. When an employee does not have to directly pay any health care costs, it causes some employees to use too much health care (because it is free) and to pay too much for health care (because it is free). In short, it makes are free market not work for the cost of health care.
posted on 01/25/2007 3:46:40 PM PST
it causes some employees to use too much health care (because it is free)
"Wow; MP3 players are on sale; think I'll get one."
"Wow; root canal procedures are on sale; think I'll get one."
"Wow; plasma TVs are on sale; think I'll get one."
One of these things is not like the others....
posted on 01/29/2007 5:49:08 AM PST
(It's hard to be religious when certain people don't get struck by lightning.)
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