Withholding and Medical Costs

I wanted to title this post FairTax and Medical Costs, but thought I would refrain from setting off another firestorm!

Anyway, a friend of mine, who is President of a medical devices company sent me the following article. I would say that the author is fairly well respected.

Read it and pause to think about how the FairTax (or any other alternate method to Withholding) could benefit the healthcare system:

http://www.hoover.org/publications/digest/3459466.html (Note: I just linked the first link that came up using Google.)

When government intervenes, and one of its main ways to do so is by manipulating the tax code, bad things often happen. And as we've seen previously on 2outof4, easy money (when the payor does not have to consider the cost) leads to higher prices.

The idea of a combination medical savings account and high deductible/big ticket insurance plan seems like an intelligent answer to me.

-2outof4