Posts Tagged ‘health insurance’

Raise *these* taxes

1 August 2009

So many problems out there — health care costs, climate change, mortgage crisis — and so many complicated solutions being pursued.  Some solutions that economists would tend to favor that do not seem to be part of the current political debate involve eliminating a couple of expensive tax loopholes, for health insurance and mortgage interest, and imposing a carbon tax.

All of these would raise a lot of revenue, and tax increases of any kind are like kryptonite to politicians and of course counterproductive in a recession, but they could be made revenue-neutral by cutting tax rates or increasing the personal exemptions or standard deductions.  Or, when the economy has recovered, tax increases like these could be part of a deficit-reduction package.

One by one:

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