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Current proposals for health care reform would exacerbate existingproblems in the U.S. health care system and weaken the economy. Inparticular, the proposed surtax on high-income individuals wouldimpose deadweight losses on the economy, depressing employment andslowing economic growth. True reform would change outdated rulesand regulations to give consumers greater choice and autonomy intheir health care spending. Such reforms would lead to a moreefficient and more effective health care system without harming theeconomy.
One of the most significant initiatives of President George W. Bush's 2007 budget proposal has gone virtually unnoticed. And no wonder: How could a move to improve the way the federal government analyzes tax policy compete with news about cutting outdated programs, making the U.S. more competitive, and winning the global war on terrorism?