After the election of the Donald Trump it will be now time to pick one of his health care plans to see the country’s economy sail through. For any economist all that matter is the plan that will yield results by either double or will either continually have positive impacts consistently. This paper focuses on the advantages of the fourth Trump health care plan which stipulate to Establish Tax-free Health Savings Accounts, which could become part of an individual’s estate and passed on to heirs without an estate penalty. Additionally, all family members can use the account without penalty.
When the adopting these rule it going to the encourage more savings in the to the banks and with more savings there is going to increase the investment level.
(Bernheim 1243) Economically with a lot of funds in the bank the American citizensand the other states within it will be able to borrow loans that they will channel the funds for investment. By investing in the country the less few numbers start to invest in various areas of the economy. When the investments are cropping out so does more jobs to the citizens. Has the number of job increases it will have impact on social gap between the rich and poor. In return when the poor lives are improved through better healthcare and proper wages they will be more productive and give back taxes to the country. In different ways the economy will improve both living standards and economically.
The second advantage is that there is security for the families and children of the United States. Has the heirs can inherit the savings of the family it will ensure surety for loans and can use the funds as the starting capital in business. Additionally, health security will not be at stake has even the poor and less fortunate will access better health provided for with the citizen loans. This will ensure there is lowered healthcare expenses. The other advantage is that there is increased trade welfare with other nations. With the strong economic base and investment, a lot of countries will be lured to carry trade with our country. Thirdly, there are alsohigh yield options from different hospitals and banks savings carried with. The citizens will get opportunity to save with either one or two banks to which will have different interest rates savings. Has the different interest rates will be given to many citizens there is high chances that the culture of saving will be adopted with ease. Finally, there is(Auerbach 1273) double chance of opportunity for the citizens and the banks. That is the US citizens will have proper heath care services which spread across the different states and also have the savings done in the name of healthcare. Moreover, the banks will also have increased sufficient funds to curb the influx of continuous slow growth rate of banks. The trade unions on the other end will get more members registering in (Auerbach 1251). The citizens will opt for joining trade unions to help them fight for their rights in the nation’s health care plan. Trade union will also have best shares has most of their members will go for more loans from them knowing clearly that they have invested on the health care savings. In turn the nation economy will be boosted at least from all dimensions.
Auerbach, Alan J. “Taxation and corporate financial policy.” Handbook of public economics 3 (2002): 1251-1292.
Bernheim, B. Douglas. “Taxation and saving.” Handbook of public economics 3 (2002): 1173-1249.