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Title: Standard Health Care Deduction

Essay Details

Subject: Miscellaneous
Date: March 16, 2008
Length: 8 / 2240
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Essay text:

Although in recent years Congress has denied the benefit of personal and dependency exemptions to taxpayers near the top of the income distribution, this appears to have been a matter of political expediency--a technique for disguising a marginal tax-rate increase for affluent taxpayers--rather than of changed principles...

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Thus, just as the costs of basic food, clothing, shelter, and transportation should be excluded from the tax base, so should the cost of basic medical care. In the same way that personal and dependency exemptions make the tax system sensitive to differences in the cost of subsistence attributable to differences in family size, a tax allowance for the cost of basic health insurance should be sensitive to age- and sex-based differences in the cost of such insurance...

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