Tax Reform

Will the Health of America Really Be Impacted by Changes to the Tax Code?  

Will the Health of America Really Be Impacted by Changes to the Tax Code?  

One of the most important jobs that the tax code in the United States has is, for many people, the one that they also most often overlook. Whether you agree with this decision or not, the tax code is often used as a way to try to essentially alter the behavior of average Americans, incentivize them to take certain actions while moving them away from others.

So-called “sugar taxes,” for example, have long been used as a way to try to get people away from sugary drinks like sodas and more toward healthier alternatives. The same is true of “Opportunity Zones,” which are often used as a way to entice people to start businesses or engage in other economic-friendly activities in certain areas as opposed to others. To that end, tax law does set policy in this country — just not in the way a lot of people realize.

But at this point, all of this demands the question — can the long-term health and wellness of a generation of Americans really be impacted by changes to the tax code made today? The answer to that question is complicated, to be sure — and it’s one that requires you to keep a few key things in mind.

The Tax Code and Health: Breaking Things Down

If you had to compile a list of all of the most pressing issues that we’re facing today as both a country and a society, obesity would no doubt be right at the top.

The current cost of healthcare — something that most people agree is historically far too high — is a massive drain on the United States’ budget. Part of this has to do with obesity — one of the leading causes of disease and other chronic conditions of the modern era. One study recently revealed that more than two out of every three adults currently are considered to be overweight or have some form of obesity. About one out of every 13 adults is considered to have extreme obesity. But to make things worse, about one out of six kids between the ages of 2 and 19 are considered to be obese as well.

A large number of public initiatives have long sought to change these numbers for the better, and one of them is a proposed change to the tax code called the PHIT Act. Currently pending in Congress, the purpose of the PHIT Act is to provide an incentive for both adults and kids to get fit in a way that helps prevent healthcare costs related to preventable chronic diseases, thus creating a healthier country and lowering healthcare’s burden on our budget at the exact same time.

If passed, the PHIT Act would allow consumers to place up to $2,000 per year into their existing pre-tax medical accounts to be used as reimbursement for physical activity expenses. Right now, these accounts are usually used to reimburse medical expenses once you become sick. The PHIT Act’s purpose is to help prevent you from getting sick in the first place.

Do your kids want to sign up for a youth sports league? Now, your medical accounts can cover the fees. Do you want to join a gym or health club? The PHIT Act gives you a new way to pay for it. The same is true for exercise classes and personal trainers, sports and fitness equipment, pay-to-play school sports fees, and more.

Whether or not the PHIT Act is passed remains to be seen, but one thing is clear: Lower physical activity costs will almost certainly promote healthier lifestyles across the country, which — at least in theory — presents a viable chance to address the obesity epidemic in the United States in an innovative and effective new way. The debate will rage on whether using the tax code is a good way to alter human behavior. 

Spencer Wilson writes for TaxBuzz, a tax news and advice website. Reach him at [email protected]

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Spencer Wilson

Spencer Wilson

Spencer Wilson, EA is a tax preparer based in Long Beach, CA. Spencer Wilson Financial Management Services has been serving the Greater Los Angeles Area and Orange County since 2004. <br /> We began in the heart of Naples in Long Beach and we continue to work hard offering tax preparation and planning, business accounting and bookkeeping and payroll services . <br /> We have helped many different people and businesses succeed financially and take control over their finances.

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