How capping the tax exclusion may disproportionately burden children & families
By Elise Gould,
May 28, 2009
May 28, 2009 | Insuring our Future: Addressing the Needs of Children in Health Reform
How Capping the Tax Exclusion May Disproportionately Burden Children and Families
by Elise Gould
Employer contributions to health insurance premiums are excluded (without limit) from workers’ taxable income. Proposals to tax all or some of employer-sponsored health premiums have been forwarded as a means of paying for health reform.
This paper examines how proposals to cap the tax exclusion may unintentionally disadvantage another group—those with family plans—a subject yet to be discussed in the public discourse. While taxing health premiums to any extent may erode access to employer-sponsored insurance, policymakers should also be wary of changes to the tax treatment that disproportionately weaken families’ access to insurance. At the very least, reform should create a level playing field.
Sign Up to Stay Informed
Search EPI sites
RELATED PUBLICATIONS
- The Corrosive Effects of Inequality on Health
- EPI’s guide to health care reform
- Exposing some health care urban legends
- Employer Health Costs Do Not Drive Wage Trends
- Senate health bill scores big for small business:Bill would help provide affordable, stable coverage
- House health care bill is right on the money: Taxing high incomes better than taxing high premiums
- Calling in sick not an option for most low-paid workers
- The House Wins
- Building a Sound Health Care Bill
- Money to spare for health care
- See more publications about: Health Care Health Policy Employer Coverage
