Tax Policy Center

Health Financing Options

Federal Budget and Economy: 2009

T09-0257 - Replace ESI Exclusion and Self-Employment Health Insurance Deduction With Voucher to Purchase Private Insurance

Revenue loss and required VAT rates due to 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.

May 11, 2009
Federal Budget and Economy: 2009

T09-0258 - 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 Level, 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.

May 11, 2009
Federal Budget and Economy: 2009

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.

May 11, 2009
Federal Budget and Economy: 2009

T09-0260 - Replace ESI Excl. and Self-Emp. Health Insurance Deduction With Voucher to Purchase Private Insurance Impose Comprehensive VAT at Tax Exclusive Rate of 8.4% With $500 Individual Cash Subsidy Distribution of Federal Tax Change by Cash Income Level, 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 8.4% to finance the voucher and $500 individual cash subsidy. The VAT is distributed to labor earnings plus all capital.

May 11, 2009
Federal Budget and Economy: 2009

T09-0261 - Replace ESI Excl. and Self-Emp. Health Insurance Deduction With Voucher to Purchase Private Insurance Impose Comprehensive VAT at Tax Exclusive Rate of 8.4% With $500 Individ. Cash Subsidy 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 8.4% to finance the voucher and $500 individual cash subsidy. The VAT is distributed to labor earnings plus all capital.

May 11, 2009