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A Tax Credit Proposal for Profit Moderation and Social Mission Maximization in Long-Term Residential Care Businesses
oleh: Kerlin Janelle A., Ye Meng, Chen Wendy
Format: | Article |
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Diterbitkan: | De Gruyter 2022-09-01 |
Deskripsi
This policy brief proposes a tax credit with related qualifying conditions that address the serious deficiencies related to abuse and neglect found in the current for-profit long-term care space. It also seeks to address the lack of government accountability for huge outlays of taxpayer dollars in the form of Medicare and Medicaid payments to these facilities, much of which results in maximizing profits for wealthy investors at the expense of vulnerable individuals with limited voice. Our proposed policy arrangement alters the organizational DNA of the for-profit organization, including the moderation of profit, to circumvent the existing financial incentives that are driving the mistreatment and malpractice so evident in the system. It aims to achieve this through four policy components including social financing, a sliding dividend cap, employee-ownership, and limits on complex corporate structures which are tied to a tax credit. This multi-faceted policy idea is intended to start the discussion around a possible path forward.