Want More Insured? Don’t Tax Insurance
It’s an axiom of economics that if you want to reduce the consumption of something, you tax it. Reduce the number of people who smoke cigarettes? Enact a tax, and then raise it. Reduce alcohol consumption? Tax booze.
Reduce the number of people with health insurance? Tax …. Oh wait. I thought that the High Moral Purpose of the moment is to increase the number of people with health insurance.
In North Dakota, State Sen. Tracy Potter (D-Bismarck) suggests eliminating the state tax on health insurance premiums. Potter wants to make the cut only for policies sold by non-profit companies (read: BlueCross BlueShield), but it’s a start.
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