Can the President's Health Care Tax Proposal Serve as an Effective Substitute for SCHIP Expansion?
Source: Linda J. Blumberg, Urban Institute, October 2007
Nearly 40 percent of a low-income family's earnings will need to be spent on health insurance if a Bush administration proposal to use the tax system to subsidize coverage is enacted, a new Urban Institute analysis has found.
After receiving the proposed tax subsidy, a two-parent, two-child family with an annual household income of approximately $32,000 would pay 39 percent of its income on family coverage. Insuring this family's children through the State Children's Health Insurance Program (SCHIP) would have no cost to the family.