Issue Brief

No. 728

Retooling Tax Subsidies for Health Coverage: Old Ideas, New Politics
November 12, 1998


Karl Polzer


This paper describes the tax treatment of health coverage and health care spending and explores the potential impact of recent tax reform proposals. The paper summarizes the criticisms of the current system and analyzes various alternatives including capping the open-ended tax exclusion of health benefits provided by employers and unions, eliminating the exclusion, and establishing a tax credit.

Related Materials

See also the entry for the related Forum Session.

In addition, see "Expanding Health Coverage for the Uninsured: Fundamentals of the Tax Credit Option" (Background Paper, August 2002).

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