...we urge you to include in your final package the provision to provide an income tax deduction for Health Savings Accounts. Wisconsin is one of only four states remaining that prohibit state income tax deductions for HSA accounts.
We applaud Governor Doyle and the Legislature for including in the state budget a provision that provides tax deductions for nearly all health care premiums that Wisconsinites pay. However, bringing Wisconsin in line with federal law and giving individuals who participate in health savings accounts a tax deduction will provide all Wisconsin residents with fair treatment under our state’s tax laws. It is important to recognize that more and more working families and Wisconsin farm families are participating in these plans.
Wisconsin is one of only four states that do not currently have a state income tax deduction for individuals and farmers who participate in health plans with HSAs. Wisconsin residents that utilize HSAs are being penalized by being forced to pay taxes on their health care savings and on their health care expenditures. Traditional health insurance plans provided by employers already carry a tax exemption since employees do not have these contributions included in their taxable payroll. In addition, the flexible spending accounts (FSAs) that allow individuals to save and spend on health care expenses are exempt. This creates a disparity between individuals who choose HSAs and those who have traditional health plans through an employer. In Wisconsin, tens of thousands of working families and farmers have chosen health plans with HSAs, and participation is significantly growing. These working families and farmers choose to use HSAs as a means to save money for their health care expenses.
American Family Insurance Group
WI Bankers Association
Community Bankers Association
WI Builders Association
WI Counties Association
Forward Janesville Inc.
WI Electric Cooperative Association
Green Bay Area Chamber of Commerce
WI Farm Bureau
WI Federation of Cooperatives
Independent Business Assn of WI
WI Hospital Association Inc
Marshall & Ilsley Corporation
WI Independent Businesses
Metropolitan Builders Assoc. of Metro Milwaukee
WI Manufacturers & Commerce
WI Merchants Federation
National Federation of Independent Business
WI PPO Association
WI Chambers Coalition
WI Realtors Association
Sentry Insurance Group
WI Utility Association
WPS Health Insurance
Which constitute the Few and Brave who remain in this State, fighting for common sense.