Why aren't health care costs 100 percent tax deductible?

[davishenderson265]

Now it's only a small percentage. Would this not make healthcare a bit more affordable?

[Travis_0004]

1. Good question

The threshold to deduct medical expenses was 7.5% of AGI. Obamacare raised that to 10% to generate more tax revenue from the sick.

[PoliticAverse]

2. Yes the PPACA reduced the deductibility to raise more revenue to pay for the act's other provisions.

[Drahthaardogs]

5. Oh yes. Unless you are a small business owner, then you can deduct all kinds of stuff.

I bought Long Term Care Insurance a long time ago... it was steal at my age of purchase and I got a deal with no increasing premiums. You would think that they would make these tax deductible, you know, incentives for people to get private insurance so Medicaid does not have to foot the bill. HOwever, since I am NOT a small business owner, the premiums are largely NOT tax deductible.

The problem with this country is they do not value an hour of labor, only investment. When we did value labor, we were the greatest nation on earth.

[Louisiana1976]

3. Why only 11% tax deductible? Why not 100% tax deductible?

[customerserviceguy]

4. The deduction for medical expenses

has effectively been shrinking for quite some time. About the only people I know who use it are those who have high expenses, a bit more income than would exempt them from Federal income tax, and somehow, a home mortgage to be able to get past the standard deduction. I suppose there are people who, on medical expenses alone can add up enough to surpass the standard deduction (after the subtraction of ten percent of their adjusted gross income from the total medical expenses), but I've never met one of them.

I use a high-deductible healthcare insurance policy, and fully fund a Health Savings account. That way, whatever I pay for medical expenses (except for my portion of the premium costs) simply doesn't get taxed for Federal income tax purposes, if I choose to pay for them out of the HSA. My employer adds money to the account every quarter, too.

I used to be a tax accountant, and the days of using the tax code to encourage or discourage various economic behaviors has become more and more limited over time. I cannot possibly see itemizable deductions for medical expenses going the other way.

[davishenderson265]

6. Sorry, I mean 100 percent!!

I mean, if mortgage interest is 100 percent deductible, why shouldn't the cost of health care?

[customerserviceguy]

7. In effect, with an HSA

it is that way, for allowable items. Being able to fully deduct some medical expense from one's taxable income in computing income tax is equal to getting that income tax-free and expending it on only healthcare related items.

[quadrature]

8. food should be 100% deductable

would make food more affordable.

same with housing costs, car, savings/investment,
and everything else

medical cost would be my last choice
for being deductable

first things first

[Liberal Lolita]

9. High medical bills, low income, no tax deduction

The only year I was ever able to deduct my medical expense was a year when my husband was out of work, my only income was social security, and I had to have 3 surgeries, in addition to my other expensive healthcare costs.
I have a lot of medical problems, and high bills. If I could afford them my medications would cost $800+ a month in co-pays, the medical treatment I need, $100+ a month co-pays. I only have medicare to pay these bills. My income is just over the medicaid threshold, so I'm only eligible for spend-down. I would have to spend $1200 a month, out of pocket to have anything covered by medicaid. That is close to half of our income. We can't afford that, so I go without, and my health suffers. If my husband, and I had a little less income I would get full medicaid, food stamps, and a free cell phone. I could afford the medications I am supposed to take, but i couldn't pay for the other essentials.
After 31 happy years of marriage we have considered a divorce so I can have medical care. It's way past time for universal healthcare, when old married folks have to get divorced to get healthcare.

[DavidDvorkin]

10. Why are there healthcare costs?

Might as well go to the root of the problem.

[Recursion]

11. Isn't that the point of HSAs? (nt)