So if you insure yourself privately, you can not deduct it from taxes? That would be an issue then, but seems easy to fix. Why isn't that part of the health care discussion?
Also, for simplicity, I left out payroll taxes, which are invisibly paid by your employer directly to the government ( https://squareup.com/us/en/townsquare/payroll-taxes-defined ).
So the choice from earlier is actually more correctly stated as:
- Your employer directly pays $220/mo for your insurance, or
- Your employer pays you $200/mo as cash and pays $20/mo directly to the government in payroll taxes, totaling $220/mo. Then the government takes $40 (adjust as appropriate for tax bracket) out of your paycheck as income taxes, and you have $160/mo left over to pay for health insurance.
The payroll tax issue would apply even if you could fully deduct the $200/mo from your personal taxable income.
> seems easy to fix. Why isn't that part of the health care discussion?
I am as mystified as you are.
Payroll taxes are another matter to me, that's mostly window dressing. Either employer pays the tax to the government, or pays it to employees and they pay it to the government. The outcome is the same.
I think payroll taxes exist mostly to hide the amount of taxes they pay from the population.