Evaluating Effects of Tax Preferences on Health Care Spending and Federal Revenues
AbstractIn this paper, we calculate the consequences for health spending and federal revenues of an above-the-line deduction for out-of-pocket health spending. We show how the response of spending to this expansion in the tax preference can be specified as a function of a small number of behavioral parameters that have been estimated in the existing literature. We compare our estimates to those from other researchers. And, we use our analysis to derive some implications for tax policy toward HSAs.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12733.
Date of creation: Dec 2006
Date of revision:
Publication status: published as John F. Cogan, R. Glenn Hubbard, Daniel P. Kessler. "Evaluating Effects of Tax Preferences on Health Care Spending and Federal Revenues," in James M. Poterba, editor, "Tax Policy and the Economy, Volume 21" MIT Press (2007)
Note: HC PE
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Find related papers by JEL classification:
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H5 - Public Economics - - National Government Expenditures and Related Policies
- I1 - Health, Education, and Welfare - - Health
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-12-16 (All new papers)
- NEP-HEA-2006-12-16 (Health Economics)
- NEP-PBE-2006-12-16 (Public Economics)
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