Answer to Everything – Health Care Vouchers and Flat Tax

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!

SINCERELY,

DAVID *****
ALPINE, CA

2 thoughts on “Answer to Everything – Health Care Vouchers and Flat Tax

  1. This makes perfect sense and is similar to what I understood Dr. Carson to propose. Of course because it makes sense and would, in fact, reduce government involvement, it will never happen. Why we can’t do these things (along with fracking, the Keystone pipeline, letting bad businesses fail, etc. is SO FRUSTRATING!

  2. Some needed changes to consider:

    These funds will be placed in a trust fund that can only be used to pay for the vouchers.

    Government can’t be trusted with ‘lock boxes’. Think SSN.

    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.

    Does not sound fair to me as I’ve only seen a doctor twice in 25 years, yet you want to tax me 10% on all that I buy?

    When insurance companies compete for the vouchers, they will provide more coverage.

    You create an artificial floor. Think college tuition and Section 8 housing.

    Here is my take:

    Mandatory health savings account (HSA) by age 18 or first job. Can be started as early as conception. Privately healed, Government oversight (what they actually do well at). Two parts A) standard B) cosmetic. Anyone can put into this account. HSA is transferable via estate. Can gain interest. x% of income tax free invested into HSA. You can tax free donate into any HSA also. You can invest more into your own HSA.

    You now have a structure that is free market, based fair upon usage, teaches people the value of savings (private account so you get statements and you can see invested monies grow), allows bleeding heart hollywood types to donate their tens of millions of dollars to the welfare of America as they are always going on about. If people spend more than they have invested, they can take personal responsibility and solicit donations just like any .org does. People can donate with confidence into one of two of the accounts depending on needs (cosmetic or standard).

    You have an account, earning interest, that you can then will to any other HSA account. So someone healthy like me, can then donate to someone I know that is sick. HSA America organization might crop up to assist people in donating their HSA account to needy people. A service to help you find a needy person to “sponsor” if you like that word. If there is a sick member at church, take up an offering into their HSA, knowing it can only be spent on medical care.

    Tax deductible investments into HSA so even big business can get involved as they always need deductions.

    Flat Tax

    I do believe in a Flat Tax with no other federal tax thus eliminating the IRS completely.

    Everyone pays including those who illegally obtain their wealth. No deduction, no IRS, no tax forms. I think some items such as milk, bread, ground beef, etc. should be exempt. Those items should NOT include name brand items, specialty items such as ice-cream, steak, lobster, etc. This can get VERY complicated if politicians listen to business as to what should be included as they have a financial incentive to get their products include. This is one reason why food stamps is corrupted now. Exemptions should be handled by the State, not fed. Items should be voted on during regular State elections. Most everything is electronic making this easy.

    You remove the IRS which is not needed in todays electronic world to collect taxes. Everyone pays, so everyone has skin in the game as to what the government spends those dollars on. Yes, wealthy always pays more, but only due to their spending being more. You can also then eliminate corporate tax as they are paying taxes on everything they purchase. If we must keep corporate tax, 10% should be more than acceptable, and easily collected as there are no deductions. Customs controls any spending outside the US.

    So now, if I earn money and want to donate to the poor, church, etc., I can do more as that money is not taxed until the recipient spends the money. If I choose to invest, which is wise, I can without the overhead of taxes until I spend the money.

    This removes the bureaucracy and waste of government and will put more money, more quickly, with less middlemen (Govt), all while being done in a ‘fair’ and volunteering way.

    Fed Govt can probably be cut by 60% in 5 years. Reason #1 why they won’t do it.

    @RichGetz

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