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For the informed consumer of health care
The Bush Healthcare Tax Proposal
The Bush administration has proposed federal tax deductions of $7,500 for individuals or $15,000 for families who acquire health insurance on their own or through an employer. The deduction would be available to all individuals and families who purchase health insurance, regardless of the value of their policies or whether they itemize deductions on their tax returns
For U.S. residents who receive employer-based health insurance, the deduction would be offset by the cost of their coverage. The proposal would for the first time levy an income tax on the value of employer-sponsored health insurance in some cases. Currently, employees are not taxed on the value of their employer-sponsored health insurance. Under the proposal, individuals and families with employer-sponsored health insurance plans worth more than the proposed allowable deductions would pay income taxes on the difference.
This proposal indeed levels the playing field regarding tax treatment and should motivate employees to select more spartan coverage to maximize their tax deductions.
Posted by Phil Daigle on January 21, 2007 8:39 PM
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