Question

How will medical expenses be affected by trumps new tax laws?

Answer 1

Trump new tax laws reduced the tax rates upon the income of individuals as well as reduced the corporate tax rates. Due to reduction in tax rates, there will be an increase in disposable income that can be spent upon the health care. Individuals can get the deductions of 7.5% or more of their income spent towards the medical expenses in the year 2017 and 2018. So, with this benefit, some benefits will go to the tax payers. Besides, the new tax laws eliminated the Obama care tax from those people who were not buying the insurance. So, here also, this benefit will go to the people who did not buy the health insurance. But, few people will get the preventive care to prevent the occurrence of high cost health care problems. So, for those people not availing the preventive care, will have to pay more towards the health care expenses. So, apparently there are some benefits towards the medical expenses. But, overall cost of health care will rise if preventive care services are not availed. In combination with the new American Health Care Act, it will more benefit to the corporate & firms and less to the people.