Every subsidy that goes to a person basically is a roundabout way to fund an industry. Even tax write offs are. Like a mortgage interest rate deduction just helps banks and the real estate industry, not the people buying a house. The write off pushes housing prices up, since the banks can give out slightly higher mortgages to borrowers and the market adjusts to the bigger inflow of cash and supply doesn’t increase faster. If the write off didn’t exist people could borrow less but houses would cost less as well. This basically happened in my country the Netherlands. Nobody benefited from the introduction of the mortgage interest deduction except the banks and people who already owned a home when the policy was introduced.
This is just a roundabout way of subsidizing the health insurance industry while making his base think he actually did something for them.
Every subsidy that goes to a person basically is a roundabout way to fund an industry. Even tax write offs are. Like a mortgage interest rate deduction just helps banks and the real estate industry, not the people buying a house. The write off pushes housing prices up, since the banks can give out slightly higher mortgages to borrowers and the market adjusts to the bigger inflow of cash and supply doesn’t increase faster. If the write off didn’t exist people could borrow less but houses would cost less as well. This basically happened in my country the Netherlands. Nobody benefited from the introduction of the mortgage interest deduction except the banks and people who already owned a home when the policy was introduced.
No that’s the ACA. This is just peanuts.