New Health Savings Accounts Useful for Tax Avoidance
describes the new tax-free medical savings accounts that are part of the
Medicare bill that Bush will be signing in a few days.
(“Health savings can be tax shelter”).
According to the article, the new law allows people to sign up for these
accounts starting — if they can
find a company that’s ready to administer the plans.
To qualify for the plans, you have to have a “high-deductible” medical
insurance policy (“As defined in the new Medicare legislation… a
high-deductible policy is $1,000 for individual coverage, $2,000 for a
The accounts will join about a half dozen other major provisions in the
federal law that provide a tax advantage for health care spending. But nothing
now in the law combines the broad eligibility and generous tax benefits of
“This is far and above superior to all the other ones that are out there,”
says Jay Nawrocki, legislative analyst at tax publisher
Contributions, investment growth and withdrawals for health-related expenses
are all free from taxation. That makes tax benefits superior even to
the money is taxed either before it goes into the investment account, or as it
is taken out. Of course, money from an
when taken after age 59½, can be spent without restriction.
Health savings accounts carry generous annual contribution limits. The law
allows an annual tax write-off equal to the deductible amount of the
accompanying health care plan. But the tax write-off can’t exceed $2,250 for
an individual plan, $4,500 for a family plan. Limits bump higher in years
And there’s no sign of slowing down. Word on the street is that Dubya is
looking for some circuses to butter his bread with and has decided on a bold
expansion to the space program — we’re going back to the moon, and then to
Freedom! site advocates an interesting approach to disengagement
These days in the
US, one of the
best ways of doing freedom is to unsubscribe from a coercive government,
depriving the State of your financial support. And for me, the easiest way to
unsubscribe was to go permanent tourist.
Jesse Weller, an
spokesman, said Wednesday that confidentiality laws prohibit him from
addressing Hill’s federal tax status. But Weller said any taxpayer who refuses
to pay what is owed the government faces the “full weight of the
civil and criminal process.”
About Hill’s public no-tax-payment declaration, Weller said, “It is a very
spokesman Weller said one way or the other, a defiant taxpayer like Hill will
end up paying more taxes and fines than originally owed.
“There is no law in the land that even suggests you’re free to avoid paying
taxes for any reason,” Weller said.
Carl Watner has dug up some detailed information about the poll tax that Henry
David Thoreau was resisting all those years ago — how it was administered, who
was the collector, and how his imprisonment for tax refusal wasn’t actually
justified by law (although “Staples, the tax-collector, and Thoreau were
probably unaware of the provisions of the statute.”) If this sort of
historical detective work interests you, take a look at his short article:
Highway Tax vs. Poll Tax: Some Thoreau Tax Trivia.