Healthcare: Revenues to Fund Healthcare Reform
Reforming healthcare requires revenues to pay the costs of subsidizing insurance for households that cannot afford coverage themselves. Tables show the revenue and distributional effects of various policies that would increase federal tax revenue.
Surcharge on High Income Individuals: American's Affordable Health Choices Act of 2009 |
| Distributional Effects |
| By Cash Income | | By Cash Income Percentile |
| vs. Current Law | | vs. Admin. Baseline | | vs. Current Law | | vs. Admin. Baseline |
| | | | | | | | | | | | | | | |
| Impact on Effective Marginal Individual Income Tax Rates |
| By Cash Income | | By Cash Income Percentile |
| | | | | | | |
| Baseline Effective Marginal Individual Income Tax Rates |
| By Cash Income | | By Cash Income Percentile |
| | | | | | | |
Replace Tax Exclusion for Employer-Sponsored Health Insurance with Tax Credit |
| Distributional Effects |
| By Cash Income | | By Cash Income Percentile |
| Replace Exclusion for Both Income and Payroll Taxes |
| Non-refundable | | Refundable | | Non-refundable | | Refundable |
| | | | | | | | | | | | | | | |
| Replace Exclusion for Income Tax Only |
| Non-refundable | | Refundable | | Non-refundable | | Refundable |
| | | | | | | | | | | | | | | |
| Revenues Under Alternative Proposals |
| |
| Tax Units Paying No Individual Income Tax Under Alternative Proposals |
| |
| |
| Increases in Revenue |
| |
| Distributional Effects |
| Replace Itemized Deductions with 15 Percent Credit |
| By Cash Income | | By Cash Income Percentile |
| Non-refundable | | Refundable | | Non-refundable | | Refundable |
| Current Law | | Admin. Baseline | | Current Law | | Admin. Baseline | | Current Law | | Admin. Baseline | | Current Law | | Admin. Baseline |
| | | | | | | | | | | | | | | |
| Increase Social Security Payroll Tax Rate by 1 Percent |
| By Cash Income | | By Cash Income Percentile |
| vs. Current Law | | vs. Admin. Baseline | | vs. Current Law | | vs. Admin. Baseline |
| | | | | | | |
| Eliminate Social Security Payroll Tax Earning Cap |
| By Cash Income | | By Cash Income Percentile |
| vs. Current Law | | vs. Admin. Baseline | | vs. Current Law | | vs. Admin. Baseline |
| | | | | | | |
| Index Individual Income Tax Parameters to CPI Less 1 Percentage Point |
| By Cash Income | | By Cash Income Percentile |
| vs. Current Law | | vs. Admin. Baseline | | vs. Current Law | | vs. Admin. Baseline |
| | | | | | | |
Reform Tax Exclusion for Employer-Sponsored Health Insurance |
| Increases in Revenue |
| |
| Distributional Effects |
| Repeal the Employer Sponsored Insurance Exclusion |
| By Cash Income | | By Cash Income Percentile |
| | | | | | | |
| Impose an Unindexed cap on the Employer Sponsored Insurance Exclusion |
| By Cash Income | | By Cash Income Percentile |
| | | | | | | |
| Impose a Cap, Indexed by CPI, on the Employer Sponsored Insurance Exclusion |
| By Cash Income | | By Cash Income Percentile |
| | | | | | | |
| Impose a Cap, Indexed by Projected Growth of Medical Expenses, on the Employer Sponsored Insurance Exclusion |
| By Cash Income | | By Cash Income Percentile |
| | | | | | | |
| Impose an Unindexed Cap on the Employer Sponsored Insurance Exclusion Based on the 90th Percentile of Premium Levels |
| By Cash Income | | By Cash Income Percentile |
| | | | | | | |
| Impose a Cap on the Employer Sponsored Insurance Exclusion, Indexed by CPI and Based on the 90th Percentile of Premium Levels |
| By Cash Income | | By Cash Income Percentile |
| | | | | | | |
| Impose a Cap on the Employer Sponsored Insurance Exclusion, Indexed by Projected Growth of Medical Expenses and Based on the 90th Percentile of Premium Levels |
| By Cash Income | | By Cash Income Percentile |
| | | | | | | |
| Replace ESI Exclusion and Self-Employment Health Insurance Deduction with Voucher to Purchase Private Insurance |
| Revenue Effects and VAT Rate |
| |
| Replace ESI Exclusion and Self-Employment Health Insurance Deduction with Voucher to Purchase Private Insurance, Impose Comprehensive VAT at Tax Exclusion Rate of 6.7% |
| By Cash Income | | By Cash Income Percentile |
| | | |
| Replace ESI Exclusion and Self-Employment Health Insurance Deduction with Voucher to Purchase Private Insurance, Impose Comprehensive VAT at Tax Exclusion Rate of 8.4% with $500 Individual Cash Subsidy |
| By Cash Income | | By Cash Income Percentile |
| | | |
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