Long-term Tax benefits of medicaid

Long-termTax benefits of medicaid

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Followingtheaffordable careactof 2010, thegovernmentof America widenedthescopeof medicalinsurancecover.Theoutcomesof theprogramwerecertain.Short-termoutcomesprovedtheprogrambeneficial becausethelevels of mortalityamong childrenwentdown.Accordingto Brown et al. (2015), thelong-term taxreceiptsare favorableforthenationalandfederalgovernment(Brown et al., 2015).

Aclosestudyof theresearchshowsthat,increasedeligibilityof childrenfortheprogramraisesthetaxpaymentsby citizens.Thecollectionof taxhappensfortheentireperiodthat childrengettheinsurancecover.On thesamenote,thereducedmortalityincreasesthenumberof taxpayers whenchildrenbecomeof age.Accordingto Brown et al. (2010) whenchildrenattain28 years,thegovernmentgetsback56 centsforeverydollaritspenton their medicalscheme(Brown et al., 2015).

Secondly,thefindingsof theresearchshowthattheregistrationof childrenunder thisprogramreducestheamountreceivedunder theearnedincomecredittax.ThelowEICT is a resultof bothshort-term andlong-term benefits.Whenchildrengeta medic aidcover,theyare likelyto haveimprovedhealthand,therefore,be ableto attendclassesandcompletetheir studies.Theystanda betterchanceto getsustainable job,andthegovernmentwill not finditnecessaryto givethem taxbenefits.In additionto this,thebeneficiariescan paymoretax.Theresearchindicatesthatthegovernmentenjoysa 3% increasein thetaxcollectedfrom thebeneficiarieswhentheyattaintheageof 31 years(Brown etal., 2015).

Theresearchgivesa compressive analysisof thebenefitsof theprogram.In my opinion,theresearchis a reviewof thedirectbenefitsreflectedin reducedmortalityratesandreducedburdenon healthcosts.Thelong-term benefitsmanifestindirectly,buttheyare a resultof theshort-term benefits.Favorabletaxreceiptsforthenationalandfederalgovernmentare someof thelong-term benefits.

References

Brown,D., Kolwaski, A. and Lurie, I. (2015). Medic Aid as an Investment inChildren: What is the long-term impact on tax receipts? NationalBureau of Economic Research:Cambridge.