Tax Incentives as a Solution to the Uninsured:Evidence from the Self-Employed

Between the years 1996 and 2003, a series of amendments were made to the Tax ReformAct of 1986 (TRA86) that gradually increased the tax credit for health insurance purchases bythe self-employed from 25 to 100 percent. We study how these changes in the tax code haveinfluenced the likelihood that a self-employed person has health insurance coverage as thepolicy holder of the plan. The Current Population Survey (CPS) is used to construct a dataset corresponding to 1995-2005....