On the recordDecember 7, 2010
In fact, this first bullet about 100 percent deductibility will solve the problem with portability. Right now, 85 percent of America gets their health insurance through their employer. It is because employers can deduct the cost of their health insurance that they provide to their employees as a regular business expense, and the employee can get that money as a nontaxable benefit. But if we make it 100 percent deductible for everybody, then the employer can give that money in increased wages to the employee. It is still a deductible amount. It won't cost the employer any more money out of their bottom line, but they can give it to the employee, and then the employee can take those dollars and instead of having to be saddled with whatever insurance policy that the employer provides for them, the employee can go buy the insurance wherever they want with whatever kind of coverage that they want. In fact, Dr. Gingrey brought up something about the mandates that the States have put on.
