On Tue, 12 Nov 2013 10:34:10 -0500, wrote:

On Tue, 12 Nov 2013 09:00:51 -0500, John H
wrote:

Do you think a regressive tax like the typical 18% VAT in all of these
other countries would fly here? How about a 10% across the board
surtax on income?

Don would still trade tax bills with us in a heart beat.

If we had an 18% VAT the Dems would want to 'subsidize' the purchase of anything and everything for
the bottom 50% of the population. The top 50% would pay the VAT plus the VAT subsidy for the other
half of the population.


The problem with the VAT is everyone pays it. You can tune it somewhat
by limiting what it applies to but everyone will see some of it

It would be easy to have a 'VAT Credit' on the 1040, just like there'll be a Health Insurance Credit
for the 'poor' . I just entered some data in a subsidy calculator site. Household of four, 2 adults
in 30's, non-smokers, and two kids. Annual income $65000. http://tinyurl.com/mfxnfxp

Here's what I got back:

Household income in 2014: 276% of poverty level
Maximum % of income you have to pay for the premium, if eligible for a subsidy:8.8%
Health Insurance premium in 2014 (for a silver plan, before tax credit):$9,256 per year
You could receive a government tax credit subsidy of up to:$3,533 per year
(which covers 38% of the overall premium)

Other Levels of Coverage
The premium and subsidy amounts above are based on a Silver plan. You have the option to apply the
subsidy toward the purchase of other levels of coverage, such as a Gold plan (which would be more
comprehensive) or a Bronze plan (which would be less comprehensive).

For example, you could enroll in a Bronze plan for about $4,138 per year (which is 6.37% of your
household income, after taking into account $3,533 in subsidies). For most people, the Bronze plan
represents the minimum level of coverage required under health reform. Although you would pay less
in premiums by enrolling in a Bronze plan, you will face higher out-of-pocket costs than if you
enrolled in a Silver plan.

Out of Pocket Costs
Your out-of-pocket maximum for a Silver plan (not including the premium) can be no more than
$12,700. Whether you reach this maximum level will depend on the amount of health care services you
use. Currently, about one in four people use no health care services in any given year.

You are guaranteed access to a Silver plan with an actuarial value of 70%. This means that for all
enrollees in a typical population, the plan will pay for 70% of expenses in total for covered
benefits, with enrollees responsible for the rest. If you choose to enroll in a Bronze plan, the
actuarial value will be 60%, meaning your out-of-pocket costs when you use services will likely be
higher. Regardless of which level of coverage you choose, deductibles and copayments will vary from
plan to plan, and out-of-pocket costs will depend on your health care expenses. Preventive services
will be covered with no cost sharing required.

Other Coverage Options
Children and young adults under age 30 are eligible to purchase catastrophic coverage. With a
catastrophic plan, you would pay out-of-pocket for most health services until you reach the annual
limit on cost sharing ($12,700 in 2014). However, preventive services are covered with no cost
sharing required.

..


John H. -- Hope you're having a great day!