You know how it’s impossible to buy an airplane ticket, unless your company pays for it? The reason is that businesses can deduct air travel as an expense.
You know how it’s impossible to go out to dinner, unless your company pays for it? The reason is that businesses can deduct meals as an expense.
You know how it’s impossible to afford printer paper and staplers unless your company pays for it? The reason is that–
“OK Bob, you’re making some kind of ‘analogy,’ we get it. What the hell’s your point?”
I’m glad you asked. Look at how Steve Landsburg and Scott Sumner are really mad at Paul Ryan–for refraining from imposing massive new taxes on health insurance. In my new Lara-Murphy.com blog post, I explain why I think their angst is misplaced.
Incidentally, to see just how mixed up Scott ended up getting on EconLog, look at this, when he responded to a critic (Glenn):
Glenn, You said:
“The bill eliminates most (all?) of the new taxes imposed on the sector by ACA. This should translate into lower costs.”
Which taxes are those? Removing the medical devices tax will increase health care costs.
No, taxing a supplier leads to higher prices.
It would be as if Scott were (correctly) arguing for taking away government support for colleges and universities, and then in the trenches ended up arguing, “In order to reduce education costs, the government should impose a tax on colleges for every student enrolled.”
Incidentally, David R. Henderson also had a (less cheeky) complaint against Scott’s post.