T09-0259 - Replace ESI Exclusion and Self-Employment Health Insurance Deduction With Voucher to Purchase Private Insurance Impose Comprehensive VAT at Tax Exclusive Rate of 6.7% Distribution of Federal Tax Change by Cash Income Percentile, 2009
2009 Distribution table for replacing the employer sponsored insurance deduction and self-employment health insurance deduction with a voucher to purchase private insurance. Individual voucher value depends on age and gender; the total voucher for each tax unit is the sum of each individual's voucher. Only individuals not on public insurance receive a voucher. The proposal imposes a revenue neutral comprehensive VAT at tax exclusive rate of 6.7% to finance the voucher. The VAT is distributed to labor earnings plus all capital.