The current tax code is unfair to americans who do not get health insurance through their jobs.
Unlike those who get insurance through their jobs, people who buy health insurance on their own have to pay for it with after-tax dollars and receive no assistance from the tax code. Americans who are self-employed pay no income taxes on their premiums, but because they still owe payroll taxes, they are also disadvantaged compared to those who get insurance through their employers.
Under Current Law, The Tax Code Also Pushes People Toward Expensive Health Insurance And Lower Wages. The more expensive the health insurance plan people receive through their employers, the more tax relief they get. This makes the insurance market less competitive and pushes up prices for everyone by encouraging many workers to choose more expensive health insurance than they would choose if the tax code were not distorting their decision.
The president has proposed replacing our current health insurance tax system with a standard deduction for health insurance. Under the President’s proposal, families with health insurance will pay no income or payroll taxes on $15,000 dollars of income. Single Americans with health insurance will pay no income or payroll taxes on $7,500 of income.
Under The President’s Proposal, More Than 100 Million Men, Women, And Children Who Are Now Covered By Employer-Provided Insurance Will Benefit From Lower Tax Bills.
The President’s Proposal Will Level The Playing Field For Those Who Buy Insurance On Their Own, Saving These Individuals Money On Their Taxes.
For The Millions Of Americans Who Have No Health Insurance, The Standard Deduction Would Help Put A Basic Private Health Insurance Plan Within Reach.