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I have no tax knowledge at all, but if you were to create a pass through corporation who purchased the health insurance on the behalf of its members, could you
by endisneigh 5y ago
I have no tax knowledge at all, but if you were to create a pass through corporation who purchased the health insurance on the behalf of its members, could you deduct said fees and then pass the savings onto the members the following years?
I guess the overhead of setting up such an organization plus the fact that said corporation wouldn't actually have any revenue are big issues.
- lotsofpulp 5y agoYou do not have to do all that, simply being self employed is enough. The people getting screwed are those employed by employers that do not offer subsidized health insurance. They simply have to pay for health insurance with post tax dollars.
- butlerm 5y agoThe health insurance tax subsidy for self employed individuals is not as extensive as that indirectly provided to conventionally employed persons through their employer because it does not reduce the self employment tax, which is substantial. Whereas with statutory employees anything the employer purchases in that regard is not included in the tax base for the payroll tax or the income tax, i.e. is basically tax free. Self employed folks are treated better than they were a few years ago (no deduction basically), but that is still a big difference.
- lotsofpulp 5y agoThanks for the clarification!