October 16, 2015
No good deeds go unpunished in national politics, so let’s look a little closer under the hood of the Jeb Bush health plan unveiled earlier this week.
Attracting the most rubbernecking attention is the former Florida governor’s endorsement of a cap on the tax exclusion for employer-sponsored health insurance, as an alternative to Obamacare’s Cadillac tax on high-cost employer plans. Bush tries to dodge one bullet by setting the threshold dollar level that would trigger any new taxes (or tax revenue on higher wages in exchange for less-costly health benefits) at a somewhat higher initial amount than the Cadillac tax.
A description of his plan argues that the exclusion cap “allows employees to choose the benefits that best suit their needs,” instead of the Cadillac tax forcing employers to arbitrarily reduce benefits to avoid it and thus “limit the benefits employees may want and need.”
Read the full article at the American Enterprise Institute: Untying the tax knots of the Bush Health Plan