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BUSH HEALTH PROPOSAL FACT SHEET

February 22, 2007

The White House is continuing to push its plan to radiacally restructure the U.S. health insurance market. The effort includes a new fact sheet issued yesterday. It lays out the basics of the proposal:

The Current Tax Code Is Unfair To Americans Who Do Not Get Health Insurance Through Their Jobs. Unlike those who get insurance through their jobs, people who buy health insurance on their own have to pay for it with after-tax dollars and receive no assistance from the tax code. Americans who are self-employed pay no income taxes on their premiums, but because they still owe payroll taxes, they are also disadvantaged compared to those who get insurance through their employers.

* Under Current Law, The Tax Code Also Pushes People Toward Expensive Health Insurance And Lower Wages. The more expensive the health insurance plan people receive through their employers, the more tax relief they get. This makes the insurance market less competitive and pushes up prices for everyone by encouraging many workers to choose more expensive health insurance than they would choose if the tax code were not distorting their decision.

The President Has Proposed Replacing Our Current Health Insurance Tax System With A Standard Deduction For Health Insurance. Under the President's proposal, families with health insurance will pay no income or payroll taxes on $15,000 dollars of income. Single Americans with health insurance will pay no income or payroll taxes on $7,500 of income.

Prior Coverage:

CENTER-LEFT THINK TANK LOOKS AT BUSH HEALTH PROPOSALS

IN THIS CORNER, THE VILLANOVA MAULER

DR. MAULE AND THE BUSH HEALTH CARE PLAN

STATE OF THE UNION HEALTH CARE PROPOSAL

WHITHER HEALTH INSURANCE TAX?

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