Many in Congress and other “experts” believe that high deductibles for health insurance encourage patients to be more prudent spenders on health care. Some even want to extend the concept to Medicare by baring supplemental plans that cover deductibles and co-pays. Indeed, the deductible on any insurance is intended to make the insured think twice about incurring a claim.
Would you agree that if someone else is paying the bill, you tend to think less about the cost? Do your kids worry but turning off the lights when they leave a room? Might you order surf and turf if the dinner bill is on the company? Would you use a generic drug if the brand had no co-pay? Be honest now.
Now extend this concept to taxes, more specifically state and local property taxes. If the net tax bill for a homeowner is reduced by 15%, 20% or more, won’t those who set taxes be less inclined to be as prudent spenders as possible? Even beyond that, how concerned about spending are local politicians and school board members when costs are simply transferred to property taxes; hey it’s only a $165 yearly increase for the average homeowner (my local town in 2018 – the great majority going to pay and benefits for school employees).
The states with the highest taxes are screaming the loudest now that many of their constituents will lose all or a good part of that 15%, 20% or more tax break. Imagine‼️ now that it’s harder to shift the blame and cost to someone else, the concern grows… but probably not enough to lower taxes 🤪