Wisconsin Governor proposes tax deduction for employer premium contributions

Aug 20 2006

Wisconsin Gov. Jim Doyle (D) on Wednesday announced a plan that would provide a tax deduction for individuals who with their employers share the responsibility of paying their health insurance premiums, the Milwaukee Journal Sentinel reports.

The proposal would provide a tax deduction for up to 637,700 families and individuals and would save an average of $236 a year for families who currently spend $300 a month to be enrolled in their employer-sponsored health plan, according to Doyle.

The proposal would cost about $50 million annually, Doyle said. About 80,000 individuals and families who are self-employed or who do not receive health insurance from an employer already can take a tax deduction for their health plan premiums (Walters, Milwaukee Journal Sentinel, 8/16).

Doyle said that the plan would be included in his budget proposal next year if he wins re-election in November. The plan would need approval from the state Legislature before taking effect.

"This is our effort to really make sure that we're going to help people with some tax relief that helps them bring down the cost of their health insurance," Doyle said (Foley, AP/Milwaukee Journal Sentinel, 8/16).

Rep. Mark Green (R-Wis.), Doyle's opponent in the upcoming gubernatorial election, said the plan is "not a bad idea" but added that it is a "very modest step" that "does nothing about health care costs" (Milwaukee Journal Sentinel, 8/16).