Benefits with Risks — Bush's Tax-Based Health Care Proposals

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Abstract
In his State of the Union address in January, President George W. Bush announced a major two-part health initiative that would create a new uniform tax deduction for all those obtaining health insurance and provide assistance to states that make basic private health insurance available to residents (see box ). The first and primary proposal addresses the tax code's perverse and inequitable treatment of health care expenditures, seeking thereby to reduce the ranks of the uninsured.1 If adopted as proposed (a highly unlikely prospect), the initiative would take half a step toward a more equitable system, but it would have an uncertain effect on the expansion of coverage and could expose insured Americans to some significant risks.

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