Tax incidence is the first lesson of many introductory economics classes. The basic point is this: levying a tax on a business doesn’t always mean that the business pays the tax—sometimes they just raise their prices and make individuals pay it.
The Joint Economic Committee has recently released a letter, which states “the staff of the Joint Committee on Taxation estimates that the excise tax would be mainly passed along through increases in premiums.”
Politicians may try to hide the tax on your health insurance, but you’ll feel it in rising prices. Interesting. Taxing insurance doesn’t make it cheaper.
Who’d have thought.
Read the PDF of the letter here.