Tax Break Might Affect Health Contributions

12.26.12 | Sarah Harnisch

Congress might start taxing your health contributions. It is the single biggest tax break allowed by the government, outstripping the mortgage interest deduction and the deduction for charitable giving. About one in two Americans currently pay no income or payroll taxes on what their employer contributes for their health insurance, and in most cases, on their own share as well. The president needs cash to finance his healthcare overhaul plan, so now Congress is considering raising $150 billion in revenue. They’ll likely take it up in the first part of the year.