Trump’s Magical Obamacare Replacement
President Trump said, “We are going to replace Obamacare with tax credits and enhanced Health Savings Accounts (HSA).” IRAs and 401Ks are old taxed accounts. HSAs enjoy tax free deposits, growth and withdrawals, AMEN! If you hate taxes you will love the HSA and total tax FREEDOM. The tax-free HSA is almost magical. I enrolled the 1st tax-free HSA in October of 1996 when they were called tax-free MSAs in the “Original Pilot Test.” HSAs are combined with low-cost health insurance. The 1st person to enroll had health insurance for $24 a month with a $2,250 deductible. After he made his HSA deposit, maximum for 2017 is $3,400, he saved more in taxes for the year than the cost of his insurance! That’s what I call affordable insurance. Who can’t afford to save money?
America will soon discover that President Trump’s Obamacare replacement is almost magical too. The tax credits to purchase insurance with President Trump are much better than the tax credits of President Obama. Obamacare’s tax credits are income-based and restricted to singles earning $12,000 to $49,000 only. Married couples are cut off of any Obamacare tax credits at $64,000. President Trump’s tax credits are age-based so everyone qualifies. A leaked document has been obtained that reports the size of these credits. Those under 30 would get a $2,000 subsidy per year; those aged 30–39 would get $2,500; 40–49, $3,000; 50–59, $3,500; and 60-plus, $4,000. Any unused tax credit after buying insurance is deposited into your tax free HSA at the bank, that you may access with an HSA VISA card.
This is so simple I am shell shocked and amazed that not one politician in America, to date, can explain Republican health care reform. Admit it, this is bizarre. For example, a 30-year-old couple and two children would get a subsidy of $9,000 a year. Insurance costs vary across the Nation but in most of middle America this family can purchase HSA Qualifying health insurance for $6,000 a year. This would leave $3,000 of the subsidy unused so this amount is deposited into the HSA at the bank for this family, tax free, and may be used for medical, vision and dental expenses. Any unused HSA funds at the end of the year are dedicated to retirement health care expenses. Saving with an HSA is the smartest way to save because money that is never taxed will last longer.
President Trump wants to enhance HSAs and make them bigger, better and bolder by raising the maximum that may be deposited each year to $6,550 for a single and double that amount for a family or $13,100 per year. HSA funds may be placed in mutual funds for the possibility of a higher rate of return. Employers love HSAs (when they understand them). Employers who make HSA deposits into their employees’ accounts eliminate payroll tax, workers’ compensation and unemployment expense. Employees earn these funds tax free and eliminate Federal and State* income tax and payroll taxes. Tax-free HSAs are compensation without taxation. HSAs turn high health insurance premiums into assets for employees. HSAs help employees to save premium, ELIMINATE taxes and build wealth.
President Trump’s Obamacare replacement will transform America for the better and will be the largest domestic policy achievement since World War 2. President Trump will empower Americans with freedom and target wealth to the poor. I’m optimistic because Obamacare is the Titanic and can’t be saved and President Trump is holding all of the cards. Obamacare replacement with age-based tax credits and enhanced HSAs will Make America Great Again!