Category: Income tax

The Huge Healthcare Subsidy Hiding in Plain Sight

EDWARD D. KLEINBARD, professor of law, USC Gould School of Law.

This op-ed originally appeared in the Washington Post on Oct. 15.

The political right has paralyzed government over the implementation of the Affordable Care Act, on the grounds that the ACA represents an unacceptable government intrusion into what today is the province of private markets. But the premise is fundamentally untrue.

Government’s hand has long shaped and subsidized health-care markets, for example, in Medicare and Medicaid (which dominate how medical care is organized and delivered in America, even for care that falls outside their reach), or the requirement that hospitals treat urgent care needs of indigents.

A Low Tax Burden — and Still Complaining

EDWARD D. KLEINBARD, professor of law, Gould School of Law.

This op-ed originally appeared April 22 at CNN.

Tax day may be over, but many Americans are still suffering from tax hangovers.

If it’s any consolation, here’s our country’s best-kept fiscal secret: According to the Organization for Economic Co-operation and Development, Americans in 2012 enjoyed the lowest tax burdens as a share of our national economy of any developed country in the world.

How can it be that we feel so much tax pain, but compared to other developed countries our tax burdens are so low?

There are three reasons.