Peter Martin (CT Nov 27th) suggests that the new government will have to somehow delay tax cuts or find some other way to reduce demand. Here is one suggestion. Give all the tax cuts but ensure that the tax cuts are spent on something that would be purchased anyway. For example give the tax cuts back to tax payers but as money in a special health care bank account owned by the tax payer. Money from these bank accounts can ONLY be spent on approved health care such as gap cover for the individual or their immediate family. If it is not spent then it remains in the bank account earning interest for spending in later years. A high percentage of people will not need it immediately and so spending will be delayed. It will reduce the need for the safety net provision on health costs and it will satisfy the promise to give tax cuts.

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