A common prescription for reducing the number of uninsured is to increase the tax subsidization of health insurance in the U.S. Yet, we already provide over $100 billion per year in tax subsidies to health insurance. This paper provides an assessment of the past and potential impacts of taxation on health insurance coverage and costs. I begin by reviewing the central facts on health insurance and taxation. I then provide a framework for assessing the impacts of tax policies on health insurance coverage and costs, and I review the existing empirical evidence on the key behavioral parameters required to model these impacts. I conclude with the policy implications of these findings for tax policies to expand insurance coverage.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
8657.
Length: Date of creation: Dec 2001 Date of revision: Publication status: published relationship to a non-chapter. This should not happen. Please contact NBER. Handle: RePEc:nbr:nberwo:8657
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Chapter
Jonathan Gruber, 2002.
"Taxes and Health Insurance,"
NBER Chapters,
in: Tax Policy and the Economy, Volume 16, pages 37-66
National Bureau of Economic Research, Inc.
[Downloadable!]
Find related papers by JEL classification: H2 - Public Economics - - Taxation, Subsidies, and Revenue I1 - Health, Education, and Welfare - - Health
This paper has been announced in the following NEP Reports:
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Jonathan Gruber, 2005.
"Tax Policy for Health Insurance,"
NBER Chapters,
in: Tax Policy and the Economy, Volume 19, pages 39-64
National Bureau of Economic Research, Inc.
[Downloadable!]