Dear Mr. Moore:
I listen to you often regarding the flat tax and I wanted to share with you my two part idea to solve our fiscal mess. I hope you can discuss this idea on the air or the writing in the WSJ. This is in two parts…a VOUCHER SYSTEM FOR HEALTH CARE AND FLAT TAX ON INCOME. First…here’s my answer to the health care “crisis”. What do you think?
1) COMPREHENSIVE SOLUTION TO AMERICA’S HEALTH CARE CRISIS
IF we assume that a new health care funding system is needed, please consider the following simple voucher solution to America’s Health Care crisis and promote this idea where you can.
Every American citizen receives a health care voucher on their birthday from the Federal Government. As the person grows older, the value of the voucher increases each year on their birthday based on insurance and actuarial tables. Each person must spend the voucher on private health insurance plans of their choice made available nationally across state lines. No government run insurance plan! Each year the insured must apply the voucher they received to the insurance plan of their choice.
If a person chooses not to use the voucher, it will be applied to a private insurance plan upon the first doctor visit or medical claim to cover this cost.
Medicare and Medicaid systems (and the administrative costs) are eliminated and no longer required since all persons will have coverage from cradle to grave.
The entire health insurance program will be paid by a national sales tax of 10% that will be adjusted on an annual basis to reflect the actual costs of the system. These funds will be placed in a trust fund that can only be used to pay for the vouchers. Call it a Health Assurance Tax (HAT). If the value of the vouchers is not used during a persons lifetime, the funds can accumulate in a separate account that can be included in the persons estate upon death (like medical savings account). This will increase incentive to cut medical costs since the individual will ultimately have access to these funds for their heirs.
Because employers will no longer be required to provide healthcare for their employees, they can lower their prices for the goods and services they produce, thereby mitigating the increased cost imposed by the sales tax (HAT).
Implement tort reform and portability between states of insurance plans. When insurance companies compete for the vouchers, they will provide more coverage. Individuals could also supplement insurance plans from their own funds.
THIS SIMPLE PLAN PROVIDES HEALTH CARE FOR EVERYONE THROUGHOUT THEIR LIFETIMES, IS FULLY FUNDED BY EVERYONE (MORE SO FROM THE RICH SINCE THEY WILL PAY MORE SALES TAX), AND THE FREE ENTERPRISE SYSTEM WILL FORCE INSURANCE COMPANIES TO COMPETE FOR THE VOUCHERS AND ENSURE LOWER HEALTH INSURANCE COSTS FOR EVERYONE.
PLEASE CAREFULLY CONSIDER THIS FIRST PART OF MY IDEA AND THE BENEFITS IT PROVIDES FOR EVERY AMERICAN!
2) FLAT TAX OF 10% ON INCOME
I’m sure you know the benefits of the flat tax, but together the HAT and flat tax would total 20%…similar to the amount currently extracted by federal government in taxes.
THE BENEFITS OF THESE TWO PROGRAMS (THAT CAN BE USED TO SELL TO THE AMERICAN PEOPLE) ARE… A) SALES TAX WILL ALSO TAX UNDERGROUND ECONOMY, B) RICH PEOPLE WILL PAY MORE SINCE THEY WILL HAVE MORE MONEY TO SPEND AND INVEST, C) THE TAX BASE WILL BE BROADENED DRAMATICALLY, INDIVIDUALS WILL SEE A DIRECT BENEFIT (HEALTH INSURANCE)FROM THE SALES TAX, AND; D) IF YOU CHOOSE TO PAY LESS TAXES FROM THE SALES TAX, SIMPLY INVEST YOUR INCOME INSTEAD OF SPENDING IT ON CONSUMER GOODS (THIS WILL ALSO STIMULATE THE ECONOMY).
THANKS FOR CONSIDERING THIS IDEA. This will also dramatically reduce the power and control of the government by eliminating or dramatically reducing the authority of the IRS!