Healthcare as a Tax Deduction
Let's consider this: I have barely had healthcare since I left college in 1988. For most of my adult life (I am soon to be 41) I have not had any health insurance. Sometimes I have had a job with it. Most of the time I have had a job without. I was excited when lawmakers were considering healthcare for the masses. Now I understand that it is something idiots like me don't need and can live without. Self insurance is what we really need. OK.
I would now like to see no healthcare bill. Just can it. What I would like to see is a general tax deduction of healthcare.
Here is how it will work:
- If you buy health insurance it is 100% tax deductible. You still have to pay for it out of your pocket, so you need to go to work. If you know that you will be reimbursed for your health insurance you can get a policy that meets your needs based on the deductible you want to leverage risk against.
- Your deductible is tax deductible too. You know that if you have to pay for an out of pocket expense you will be reimbursed so you will spend what you need to get healthy and back into the game.
- If you join a health club like the YMCA or take yoga classes or sports or whatever keeps you mentally and physically active, then it is also 100% tax deductible. You still have to come up with the money in order to do what you want to do.
- If you are dirt cheap poor and you just buy the very basic things you need to be healthy: cough medicine, aspirin, that visit to the local medical-health doctor-mart for that insane illness that appeared unexpectedly and you have to pay $100 to $300 on your credit card or you get a payday loan to live, etc.... that will also be %100 deductible when you do your taxes at the end of the year. It does not matter that you only spent $1 or $10,000. You will get this money back or you will not have to pay it in the first place when you file your taxes.
- This KISS (Keep It Simple Stupid) tax deduction will make it so that ordinary working class and affluent people will have the ability to stay healthy, work and have better lives.
- Businesses who pay for the health care of an employee or subsidize an insurance policy will find that what they spend is %100 tax deductible too.
- Any person who helps another person or pays for a service will also find this %100 tax deduction. Now the local town doctor can accept chickens, hogs, corn or a tax deduction for his or her service! If a doctor donates a service it can be tax deductible. If a doctor or hospital can not collect debt by reasonable means it is deductible too. (I can see where this might go wrong, but all channels are still open and the revenuer can chase what he or she wants anyway.)
We don't need mandatory health care. We don't need hidden government costs to further fleece the regular or affluent worker. We just need a simple way to provide a better capitol value experience for those who contribute to the capitol and growth of the united states.
How would this get maintained? Simple. It's tacked onto the existing monolith know as the IRS. Any business who was preparing for the new healthcare law and no does not know what to do can keep all of the work they have put together and get rid of it or keep it. It is tax deductible too.
Consider this argument I am posing. There are plenty of smart people out in this world who can see the benefit of such a plan. This may also eliminate a lot of older tax deductions that are clouded in mystery where only the best
liars lawyers can negotiate the principle and the chaff.
Lastly I think that income tax should be this simple formula: (Cost to get money)-(cost of living)=(Disposable Income). (Disposable Income)*(Decimal (Percent) of the great mystery number from Uncle Sugar)=(tax owed). Everyone has to pay something. Maybe the Fed can say each dollar cost this much to use. If you hold this many dollars it cost this much (of your disposable income!). Once the money has gone through your fingers then it can not be taxed again until you use it to make more money (Hence it is a cost of making more money in the first place).
If you survived the above rambling then I wish you the very best in life, love and happiness.
We have updated this for 2017-2018: https://ogfomk.blogspot.com/2017/12/healthcare-as-tax-deduction-part-ii.html