Romney has recently floated the idea of an individual-deduction cap, the savings from which could easily fund a universal health insurance tax-credit system, depending on how the cap was structured.

FORBES: Move up http://i.forbesimg.com t Move down

Conservative plans to scrap the so-called couple penalty in the tax credit system also appear to have been watered down, with the government document saying it will bring forward plans to "reduce" rather than "end" it, as the Tory manifesto promised.

BBC: Cameron and Clegg set out 'radical' policy programme

It is operating directly through the tax and benefit system for example, by raising child benefit and introducing a children's tax-credit next year which is targeted at poorer families.

ECONOMIST: Child poverty

Mr Speaker, I said that I would look at the administrative practicalities of other options that some Right Honourable and Honourable Members have suggested, including a one-off rebate or compensatory payment as well as changes to the tax credit system to allow the average losses to be offset.

BBC: Full statement: Tax changes

And recognising that as the tax credit system became more developed and more generous, we were better able to target resources on low-income households, we increased the Working Tax Credit and the Child Tax Credit as well as Child Benefit.

BBC: Full statement: Tax changes

From the end of April, the current system of working-age benefits and Tax Credits will be gradually replaced by a new benefit called universal credit.

BBC: Benefit changes: Who will be affected?

The plan replaces the current tax exemptions for employer-provided health insurance with a refundable tax credit, while Medicare benefits would ultimately be set aside in favour of a system of vouchers for private insurance.

ECONOMIST: A Congressman with a brave vision