Tax Capping - What Do You Think?

I'm far from being an economist, but reading and hearing about tax capping today in 200c was by far the most promising financing mechanism I've come across thus far. I know Professor Dow commented on this at the Healthcare Reform Workshop this past month, but a lot of that frankly flew over my head...but today, it made sense! Wow...I finally saw the light.

I understand that eliminating tax breaks is probably sensitive, but the "Win-Win" article written by Jonathan Gruber was actually fairly enlightening. It was realistic, in that he recognized that eliminating it would be a no-no, and so reducing it would be a good bet. I don't find that so bad now do you? Given that it'll generate a good amount of revenue to fund many of these proposed reforms at the same rate at which costs rise makes total sense to me. Call me naive, but when I was employed, it didn't even occur that my premiums were tax-free, I simply chose the cheapest premium and didn't even make the calculation if I was going to save more in taxes had I chosen a more expensive one! I totally agree with Professor Robinson's arguments for tax capping. I think it's realistic and fairly on the moderate side of things.

Frankly, I am a bit disheartened because the bill seems to be losing the whole point of meaningful reform, at least in my definition of "meaningful" - which in my ideal world - means cost-control and realistically financed universal access if not coverage. After reading about the Healthy SF fact sheet today, the plan seemed promising. A group of friends were at Cha Cha Cha (tapas bar with awesome sangria and mojito by the way) in SF last Friday, and one of us pointed out that there was actually a line item for Healthy SF on our $100 bill (fyi, there was about 6 of us and we were hungry and had alcohol) for a mere $2.50. Seriously, that's like 1/50th of the total cost which is pretty much nothing! I'd be curious about whether or not SF does report healthier outcomes and I'd be curious as to how they'd measure that and determine that but it seems to be working well.

I am completely perplexed frankly by all this. We expect so much but we are unwilling to pay for anything or assume any responsibility; but when we don't get it and all hell breaks loose, we look to other people (i.e. gov't) and say "Well, why aren't you doing anything???" I guess this goes back to the fundamental values of our society in general I guess. Are we seriously that fickle??? I think I may have just posed a rhetorical question.

All disclaimer out there, I'm a self-professed Obama fan, and completely admire the guy for taking on this job amidst all the madness right now. It doesn't mean I agree with everything he's doing but in my opinion, he deserves the Nobel Peace Prize for just maintaining some sort of peace and order in trying to pass health care reform. On the global level, I'm not so sure and even if you disagree- just be happy for the guy for the sake of being happy for someone who got an award. Ok I know it's trivial and a bit like comparing apples to oranges, but we were generally happy for Taylor Swift when she won the VMA even though many people didn't think she deserved it and that Beyonce has done so much more, why can't we be happy for the President we voted into office for winning the Peace prize? Yes, I digree I know...but disagree with me by all means!