Wednesday, March 21, 2007
Joint Tax Committee Releases Revenue Effects of President Bush's Proposed Standard Deduction for Health Insurance
The Joint Committee on Taxation yesterday released Estimating the Revenue Effects of the Administration's Fiscal Year 2008 Proposal Providing a Standard Deduction for Health Insurance: Modeling and Assumptions (JCX-17-07):
The Administration’s Fiscal Year 2008 Budget includes a proposal to create a new standard deduction for health insurance, while generally repealing the present-law tax subsidies relating to health coverage. The Administration provided a brief description of this proposal in the General Explanations of the Administration’s Fiscal Year Revenue Provisions (Feb. 2007) prepared by the Treasury Department (the “Blue Book”). While a number of the details of the proposal remain unclear, this document, prepared by the staff of the Joint Committee on Taxation describes the economic modeling that the Joint Committee staff has undertaken to assess the revenue effects of this proposal.