Proposal for Medical Insurance.

Each person would be given up to $5000 tax credit. Thus a family of four would be given up to a $20,0000 tax credit.

To pay for deductibles, medicine, eye care, dentistry, etc, a separate health care account can be established. This account would carry over from year to year. Funds can be transferred to other health accounts. Any money left over after death would go to a government health care account.

So if a married couple with two children buys insurance for $11,000 a year, they would be able to tax $11,000 off their taxes. They could then add an additional $9,000 to their health care accounts.

This would provide an incentive to shop around for insurance so that savings can be added to the health care account.


Any company supplied insurance would count as ordinary income.

If the tax credit exceeds the amount of taxes paid, the additional amount would go the the health care account.

Example. John Doe pay no federal income taxes. He pays $300 a month to Blue Cross, for $3600 a year. He would get back from the federal government $3600, plus $1400 would be added to his health care account.

Example: Jane Smith has a husband and two kids. Her company pays $22,000 a year for her insurance. Jane's income would go up $2000, ($22,000 - 4*$5000). At a 30% tax rate, Jane would pay $600 more in taxes.


Population of United States is under 310 Million. So that would be $1.550 trillion per year max cost.