Health Insurance Provision and Social Security Act

What where the effects of excluding a health insurance provision from the Social Security Act

Ending deductions in health care provision would lead Tom slow growth and development in health sectors. Health facilities, as well as services, would be poor. Eliminating tax health insurance increases government expenditures. The government encounters loss of tax revenue, therefore, causing large loophole of maintaining health needs of the general public. The government tax revenue generated per year would decrease, causing a large deficit in running most of the projects in health sectors. Large tax decrease in government contributes to the lack of balanced Gross Domestic Product (GDP) (Michael, & Stephen, 2013).The rate of investment and employment opportunities declines. Static and dynamic revenues get affected by decreasing drastically. Static and dynamic revenues are used to finance and cover lost sources of income. Declining health care provisions eliminates health income from the tax code. Little or no revenues returns would be registered be registered triggering revenue decline.

Consequences of eliminating health insurance provision lead to distortion of the labour market and health insurance markets. Currently, employed individuals get their health insurance deduction directly from their employers. Hence, employers take the role of providing health insurance. Eliminating such trends leads to withholding funds provided by companies and organizations to cater for employee's health. Macroeconomic stimulation and charging get lower, and production in major sectors of the economy becomes distorted. The rate of savings and investments gets affected by lacking substantial policies that enforce government and individuals to invest in insurance sectors (Jonathan, & James, 1995).

The level of the economy is highly affected by the elimination of health insurance provision, especially on the insurance companies. Most insurance companies may lead to closure. Health Insurance companies specialize entirely on health business and generate incomes from the health sector. Terminating such trends would mean that insurance companies have no significance thus contributing to the closure of insurance companies. Jobs and income generating sources would decrease contributing to low standards of living within society. Wage and price controls get affected by the fluctuating amount of income received. A distortion on some employers that provide issuance health declines (Michael, & Stephen, 2013). The number of health insurance purchased decreases causing employers shifts their salaries by offering health insurance as a form of compensation rather than increasing incomes.

How could we have changed our future?

Medical care should be given to every citizen equally. Health of individuals is paramount and should not be compromised with other forms of operations. The public should be insured to ensure health production and perfect workers within the organization and working class (Jeremy, & Harrison, 2013). Policies should be formulated to ensure employers actively take responsibility of insuring their employees. Rough conditions of working should be compensated by ensuring that employees and employers have been given equality in the job market by the introduction of health insurance policies. Health insurance policies ensure that employees and employers are equal regarding services and standards. The government should provide ways in which health insurance provision should be enforced by facilitating adequate \and consistent provision of health insurance for a stable and consistent economy. Citizens, employees, and employers should cooperate to make sure that they have achieved adequate health care services through health insurance policies.

References

Jeremy H., & Harrison S. (2013). The tax Exemption of Employer Provided Health Insurance. Source (mercatus.org): Retrieved from http://mercatus.org/sites/default/files/Horpedahl_TaxExemptEmployerHealthIns_MOP_071813.pdf

Jonathan G., & James P. (1995). Tax subsidies to Employer Provided Health Insurance. Source: (economics.mit.edu). Retrieved from http://economics.mit.edu/files/63

& . (2013). The Economics of the Blank Slate: Estimating the Effects of Eliminating Major Tax Expenditures and Cutting Tax Rates. Source: (taxfoundation.org). Retrieved from http://taxfoundation.org/article/economics-blank-slate-estimating-effects-eliminating-major-tax-expenditures-and-cutting-tax-rates

   Sherry Roberts is the author of this paper. A senior editor at Melda Research in if you need a similar paper you can place your or