Bill · H.R. 111· House(119-HR-111)
To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for health insurance premiums.
- Introduced
- 1/3/2025
- Last activity
- 1/3/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Andy Biggs
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill proposes an amendment to the Internal Revenue Code of 1986. It seeks to allow individuals to take a deduction for health insurance premiums paid for themselves, their spouses, and their dependents. This deduction is intended to be an above-the-line deduction, meaning it can be claimed whether or not the individual itemizes other deductions. The new section would be designated as section 224. These changes are set to apply to taxable years beginning after December 31, 2024.
Yes· 3 of 7
Would middle-income households be better off under this?+5
The bill directly reduces the tax burden for middle-class families paying for health insurance premiums.
Does this cut taxes for middle-income families?+5
The bill provides an above-the-line deduction for health insurance premiums, which lowers the taxable income for many families.
Would people in middle age be better off under this?+3
Middle-aged individuals often bear significant health insurance costs for themselves and dependents.
The opposite
Does this reduce what the federal government spends?-2
The implementation of a new tax deduction will reduce federal tax revenue.
Who it would affect, and how
Potential Positive Impacts for People
-
Deduction for insurance costs: Individuals can deduct amounts paid for insurance that constitutes medical care for themselves, their spouse, and their dependents (Section 1(a)).
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Flexibility in tax filing: The deduction is allowed whether or not the individual itemizes other deductions (Section 1(b)).
Potential Negative Impacts for People
- Restriction on double-dipping: No amount allowed as a deduction for these health insurance premiums can be taken into account when determining any other deduction or credit allowable to the taxpayer (Section 1(a)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+5Good For Low Income Households+3Good For Middle Aged+3Good For Seniors+2
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Government Spending-2
- Healthcare
- Reduces Private Insurance Premiums+2
- Social Issues And Justice
- Improves Poverty Reduction+2
- 1/3/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House