Or is it Medicaid?

Make elder care expenses tax-deductible for the heirs of those who receive it? Such a policy would shift significant spending to the private sector. Among the benefits:

- Creates cross-generational incentives for frugality
- Decisions on care strategy are shared between elderly and heirs
- Encourages home-based elder care

I see all these as having a net positive social/cultural impact. Doubtless my upbringing in a conservative religious society colors this - all of my grandparents were cared for at home until they died.

Of course, this uses tax incentives rather than appropriations to accomplish policy, anathema to libertarian economists!

Capt. Bob Knaus
S/V PELLUCID
www.pellucid.org

The Shotgun draconian formula would state all Labor who have a Parent of retirement age, will lose their personal tax exemption which will go to finance a Nursing Home Fund. This eliminates the incentive to transfer Assets to Children--who have to pay anyway. lgl

Not letting the public sector pay for it would have the immediate effect of causing 100% of nursing home expenses be borne by the private sector. Indeed, the entire health apparatus could be borne by the private sector, by the simple expedient of NOT SPENDING ANY GOVERNMENT MONEY ON IT!

This causes equity problems, but nothing a negative income tax and mandatory long term care and catastrophic health coverage wouldn't solve.