VAT attack on healthcare

June 16, 2009

Ezra Klein notices that the value-added tax option to pay for healthcare reform is still floating around. Not a good idea, he says:

Levying a VAT to pay for coverage of the uninsured seems like a quick way to kill health-care reform. For the 85 percent of Americans with health insurance coverage, the VAT would be nothing but a charity tax. It wouldn’t buy them anything, as it does in the European systems. It wouldn’t free them from premiums, as it does in the Emmanuel/Fuchs voucher program. Republicans would view it as a major new tax. If Congress wants to rebuild American health care around a VAT, that’s probably a good idea. But simply slapping a new national sales tax atop the existing system? That doesn’t get you anything in terms of efficiency, and it’s going to scare the hell out of the middle class.

One comment

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Hi James,
Good Reporting, keep it up please.
Did you hear anything about this story?
http://www.asianews.it/index.php?l=en&ar t=15456&size=A

Posted by Austin Hendricks | Report as abusive