Funding Employer-based Insurance: Regressive Taxation and Premium Exclusions



主持人: 叶茂亮
U.S. employer-based health insurance (EHI) premiums are not subject to income or payroll taxes. This is regressive taxation because higher income individuals face higher marginal tax rates, which gives a higher EHI subsidy. We show this regressive policy mitigates misallocation between firm and self-employment from non-contractible heterogeneity in talent and health shocks. In our general equilibrium model, removing tax exclusion raises insurance premiums by 67%, coverage falls to 26.9%, and welfare decreases 1.9% due to reduced risk sharing and misallocation. If tax exclusion is extended to private insurance, coverage increases to 97.2%, workers’ taxes fall, and welfare increases 0.3%.


时间: 2018-06-05(Tuesday)16:40-18:10
地点: 经济楼N-302
期数: 财税青年学者论坛第五十四讲
主办单位: 经济学院、王亚南经济研究院
承办单位: 财政系
类型: 独立讲座