Health Care Costs
November 19th 2007 13:03
How Much Do You Pay For Insurance?
Health care is the biggest issue, other than the War in Iraq, to me right now. My family pays over $1000 per month for health insurance. We are fortunate at this time that my husband makes decent money, though that hasn't always been the case.
For a middle income family, that amount could be as much as 20-25% of their monthly income - just on health insurance. That doesn't include the co-pays and other expenses a family must pay to stay healthy. How are they to recover some of those costs?
Itemizing deductions on their taxes is the only way.
Itemizing deductions, however, doesn't come close to recovering the costs of health care expenses. In fact, a taxpayer can only deduct the amount of health care expenses that exceed 2% of his or her adjusted gross income. That means that the more you make, the less you can deduct for health care expenses. And if you are lucky enough to have an employer provided health insurance, it is most likely already "pre-tax" which means that much of your income is not taxed, or reported as income on your W-4. In this case, you are probably unable to recover ANY of the additional expenses associated with staying healthy or treatment of illness.
A single-payer, universal health care system would be ideal. But there are some changes that can be made much more easily, now, to give Americans relief from these outrageous costs.
Adjustment to Gross Income
If we were allowed to treat ALL health related expenses as an adjustment to gross income, it would make a much bigger difference for middle income families. In this way, taxpayers would be able to recover more medical expenses by not having that portion of their income taxed. This would be fair for everyone, regardless of how much they earn.
Urge your representatives to make changes NOW! This one change could make such a big difference, especially for middle income families.
Health care is the biggest issue, other than the War in Iraq, to me right now. My family pays over $1000 per month for health insurance. We are fortunate at this time that my husband makes decent money, though that hasn't always been the case.
For a middle income family, that amount could be as much as 20-25% of their monthly income - just on health insurance. That doesn't include the co-pays and other expenses a family must pay to stay healthy. How are they to recover some of those costs?
Americans pay too much for health insurance
Itemizing deductions on their taxes is the only way.
Itemizing deductions, however, doesn't come close to recovering the costs of health care expenses. In fact, a taxpayer can only deduct the amount of health care expenses that exceed 2% of his or her adjusted gross income. That means that the more you make, the less you can deduct for health care expenses. And if you are lucky enough to have an employer provided health insurance, it is most likely already "pre-tax" which means that much of your income is not taxed, or reported as income on your W-4. In this case, you are probably unable to recover ANY of the additional expenses associated with staying healthy or treatment of illness.
A single-payer, universal health care system would be ideal. But there are some changes that can be made much more easily, now, to give Americans relief from these outrageous costs.
Adjustment to Gross Income
If we were allowed to treat ALL health related expenses as an adjustment to gross income, it would make a much bigger difference for middle income families. In this way, taxpayers would be able to recover more medical expenses by not having that portion of their income taxed. This would be fair for everyone, regardless of how much they earn.
Urge your representatives to make changes NOW! This one change could make such a big difference, especially for middle income families.
| 87 |
| Vote |
subscribe to this blog
