Beware Return of Bracket Creep in Health Refor

Publication Date: June 1994

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Daniel J. Mitchell

Research Area: Banking and finance; Health

Keywords: Health care

Type: Report

Abstract:

Indexing was added to the tax code in 1985 as a result of the 1981 Economic Recovery Tax Act and may be the most important surviving legacy of the Reagan years. Since it went into effect, it has saved taxpayers more than $100 billion. Perhaps even more critical, however, it has restored a level of honesty to fiscal policy. Repealing this provision and allowing politicians to return to the days of stealth tax increases would damage not only the economy, but contribute to a further decline in the public’s confidence in political institutions.