It can be a lot to take in, but here’s a simple breakdown of what’s being proposed.
Objective: To make basic, private health insurance available and more affordable for more Americans.
- First the negative, the value of your insurance through your employer will be subject to income taxes. But, this may be helped with a tax deduction. Families will not pay taxes on the first $15,000 in compensation. It’s $7,500 for singles.
- Taxes will be lowered for those who purchase insurance plans on their own without an employer. This, it is worried, may mean the end of employer-sponsored health insurance since tax breaks are provided to those who purchase the insurance on their own.
- For those who cannot afford health insurance, the Federal government will assist States in providing health care to the poorer citizens at a lower cost. Massachusetts has already implemented such a program.
So we have tax code reform to “level the playing field” for those who get employer-sponsored health insurance and those who are either self-employed or cannot afford insurance. Simply put, the President states that purchasing a health insurance plan through an employer or on ones own will see lower taxes. Also, State assistance for the poor who cannot afford health insurance.
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