Health-Related Tax Subsidies

Abstract
Politicians and policy analysts are increasingly questioning the wisdom of current health-related tax subsidies. Two administration task forces have recommended reductions in the tax incentives for the purchase of health insurance.1 , 2 In Congress several bills involving changes in health-related tax subsidies have been proposed (the Health Initiatives Reform Act of 1981, the Comprehensive Health-Care Reform Act, and the National Health-Care Reform Act of 1981).3 The Congressional Budget Office has produced several useful policy studies on tax expenditures generally and on tax expenditures related to the health sector, in particular.4 5 6 There are two reasons for the increased interest in health-related tax . . .

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