Goldenboy219

Hi all, its been awhile. Been so busy lately, that i havent had an free time to actually post. But, a very key issue has come up, and being an econ major, this seems to be the perfect place to get some opinions and feedback reguarding the presidents plan to tax employer provided health insurance.

The basis of the plan is giving a tax deduction to those who obtain their own health insurance. Family's recieve a $15,000 deduction and individuals recieve a $7,500 deduction for purchasing their own insurance. Also, people and familys who have employer provided health insurance wouldnt have to pay taxes on their coverage unless the cost of the coverage exceeds the deduction.

What this really means if you make $100,000 a year and pay for your families health insurance, you will only pay taxes on $85,000 not the whole 100k.

So, in my opinion this is just great and ill explain why.

First off, this in no way hurts americans who dont have an above average income. Reason be is that people who dont make much money, and their employer doesnt provide coverage usually dont possess health insurance in the first place. This gives you the desire to not only purchase health insurance, but to pay less taxes for doing that.

The plan also allows you to forgo paying social security and medicare taxes if you inform your employer that you pay for your own coverage. The savings you would gain from not paying SS and medicare would really help pay for a large amount of the cost of an individual plan.

Great idea IMHO!

Kandahar

I dunno about that. The people who don't have health insurance are generally the same people who don't pay much in taxes anyway. So I doubt that a tax break will be much of an incentive for them.

I haven't studied this plan in depth yet, but that was my first impression upon hearing of it.

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Caine

Can you explain to me how exactly this allows you to forgo SS and medicare taxes? I would love to get those worthless withholdings off of my pay stub, as, to be quite honest they are more than my federal withholdings.

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Goldenboy219

The basis on this plan is initiative. What it does is reward people who pay taxes and dont have health insurance.

If you dont pay taxes your not part of the system, and how can any federal monetary proposal help a person/family that does not pay into it.

So yes, it wont help people who work under the table. But will give initiative to become part of the system.

As far as the relinquishment of ss and medicare, i believe it to become only effective if you pay for your own health insurance. But because this is only a proposal, there is still much to be heard.

None the less, I applaud the idea.