Subject: Tax of Employee Benefits Comment: Although this current tax proposal will be unpopular with employers and employees who have rich benefit programs, the country need a radical departure from status quo to get fundamental market forces to work better in controlling medical costs. Today the average worker with subsidized medical coverage has very little incentive to either take good care of themselves [diet, exercise, seat-belts & not smoking) or to purchase medical services wisely (or even ask how much a treatment will cost before agreeing to have it). The participant must somehow have greater accountability in the financial consequences of their lifestyle behavior and medical treatment decisions. This tax proposal might be a first step in that direction for those employees benefiting most from highly subsidized medical benefits. |