During that round, discussion centered on whether the country should have a national health system, like Great Britain or Canada. In the emerging debate, many conservatives sound like latter-day Robin Hoods, urging that Congress take tax benefits from the rich and give them to the poor. Under current tax policy, the money employers spend on their employees' health insurance is not counted as income on the employees' tax statements. That means that higher-wage earners, who are in higher tax brackets, receive greater tax relief. Yet they both must pay the same for health insurance.
Many people agree.
About 10 tax credit plans are circulating around Capitol Hill. Butler and Goodman have each written one. A broader plan designed by the American Medical Association would shift the tax credit to all individuals purchasing health insurance. Both the AMA's plan and one introduced by Rep. James McDermott, D-Washington, would graduate the amount of the tax credit according to income. If states or employers do not make up the difference, individual consumers might have to, although Butler thinks that many firms overinsure their workers.