The Cato Institute had already scheduled a policy forum for noon today where the Urban Institute’s Gene Steuerle and I will discuss the implicit tax rates in the House and Senate health care bills.
We’ve already been able to calculate the implicit tax rates that President Obama’s new proposal would impose on low- and middle-income workers. We have also been able to calculate the incentives to drop coverage under the president’s proposal. Upshot:
- The president’s proposal would result in higher implicit tax rates on low-wage workers than the House and Senate bills.
- The president’s proposal would result in greater incentives for higher-income workers to drop coverage than under the House and Senate bills. That would cause insurance markets to unravel even faster.
Zip over to Cato right now to hear me present the results – or watch the forum streaming here.