The Tax Policy Center, for example, found that replacing the deduction with a refundable credit would reduce giving by between $6 billion and $10.8 billion, and would increase federal revenue by $9.4 billion to $10.4 billion.
They would get a deduction or a refundable tax credit (meaning if they don't have a tax liability they'd get an actual check from Uncle Sam).
But, doing the math, that's not yet enough to make sure insurance will be affordable for working-class folks, so Mr Baucus includes a refundable tax deduction that ensures no one will have to pay more than 13% of their income for health insurance.
This works only if your adult child has enough income coming in to cover the credit or deduction, since neither is refundable once taxable income zeros out.
There are differences in how to provide support for people who need help in purchasing health insurance tax deductions, credits that are refundable, advanceable how long transition coverage should last, etc.
Mr. Gore's proposal, because it relies on refundable credits rather than deductions and provides a larger match for the savings of low-income families, would be steeply progressive.
Or it could not be a deduction at all, but rather a $250 refundable tax credit.
Programs based on refundable tax credits rather than deductions are more likely to give meaningful help to low-income families.
Popular deductions for mortgage interest and charitable giving would be replaced with refundable 15 percent tax credits, extending such benefits to taxpayers who do not itemize their returns and reducing them for those in higher tax brackets.
Influential conservatives in the House and Senate have balked at offering refundable tax credits to help Americans buy insurance, advocating instead for a less expensive tax deduction.
