Ilovebenefits’s Blog

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Taxing Healthcare: Income Distribution by Another Name?

Editor’s note: An interesting observation by the author of this article…nothing in the House Bill requires that the tax increases be spent on health care. I wonder what that is all about.


 Democrats in the House have rolled out an ambitious $1 trillion plan to fund healthcare reform that forces businesses and wealthier Americans to pick up the costs with higher taxes.


But while the House bill proposes revenues for healthcare, some analysts say the real goal could be to re-distribute income for an ailing economy.

“The tax increase will put the tax code to pre-Reagan days,” says Chris Dolan, a professor of political science at Lebanon Valley College in Pennsylvania.

“On the whole, what the bill is trying to do is move the tax code back some 33 years when it was higher,” says Dolan. “It’s tax increases under the guise of healthcare reform to help the economy.”

According to Dolan, there’s nothing in the House bill that would keep the government from using the tax increases to fund spending on other projects. “I’ve just looked at the House version and there’s nothing in there that says the money is only earmarked for healthcare,” says Dolan.


July 17, 2009 - Posted by | Accountability, Federal Government, healthcare, Transparency | , , ,


  1. ““The tax increase will put the tax code to pre-Reagan days,” says Chris Dolan, a professor of political science at Lebanon Valley College in Pennsylvania.”

    I don’t see why this is a problem. Reagan and the neo-conservative philosophy was the root of the current financial collapse.

    Lower taxes have increased inequality in this country, and while a small percentage has gained tremendous wealth, the rest of the country has been left out in the rain.

    Comment by Clint | July 17, 2009 | Reply

    • Let’s presume you are correct, how does this resolve the issue that healthcare cost INCREASES are unsustainable. Healthcare costs are rising faster than general inflation, faster than the average increase in revenues, faster than GDP. That means that there aren’t the dollars to pay for the costs over an extended period. So you can increase taxes now, but what do you do next year and the year after? There have to be systemic improvements in the delivery of health care, reductions in the misuse and over use of health care resources. Simply giving the uninsured coverage is not going to solve the problem…it will only send us into debt, further, deeper and faster.

      Comment by Health care -- how do we move forward | July 17, 2009 | Reply

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