Understanding the Hurdles in Healthcare Protests in the U.S. via Tax Deductions
The United States#39; resistance to formulating a universal healthcare system is deeply rooted in its socio-political and economic structures. One fascinating yet complex aspect of this debate is the reluctance of U.S. citizens to protest via tax deductions, despite the high medical expenses they face. This article delves into the reasons behind this phenomenon and explores how the U.S. tax code perpetuates existing healthcare policies.
U.S. Tax Code and Medical Expenses
Unlike other nations, the U.S. tax code fails to recognize medical expenses as a necessity. While taxpayers can only deduct medical expenses that exceed 7.5% of their annual income, the federal code does not even acknowledge food as a definitive necessity. This lack of recognition influences how individuals perceive their healthcare costs and the potential for protest.
Interestingly, food expenses are not deductible, reflecting a broader cultural and economic context where food security is often taken for granted. This situation underscores a deeper issue: the perceived luxury of medical care compared to basic sustenance in the U.S. society.
Rejection of Public Healthcare Systems
The U.S. has steadfastly refused to adopt any form of public universal healthcare system similar to other nations. This includes models such as Brazil’s SUS (Sistema único de Saúde) or the UK’s NHS (National Health Service). The reluctance to adopt such systems is not solely economic but also rooted in cultural beliefs and economic policies.
Some health insurance premiums are tax-deductible, making it an attractive option for many. However, for most individuals, the overall spends on medical expenses amount to far less than 10% of their earned income throughout their lifetime. This discrepancy often leads to a lack of urgency in advocating for significant changes.
Healthcare Spending and Perceptions
There is a significant gap between the reported costs per capita in the U.S. and the actual burden on individuals. For example, while the U.S. healthcare system forces working individuals to pay 2.9% of their earned income for medical care, a substantial 7.1% remains available for healthcare. A single individual earning a living wage of $54,360 in 2023 can spend up to $5,436 on insurance, investments, and out-of-pocket medical expenses annually.
Health insurance is often subsidized for those earning less than the living wage, further complicating the issue. Preventative care, which costs approximately 3% of the living wage, works out to about $1,630 per year or $136 per month. These financial buffers provide a false sense of security, as most policies may refuse to pay significant bills due to size or frequency.
Historical Context and Government Actions
When the NHS was established in the UK, consultants voted 8:1 not to participate, primarily due to the perception that their incomes would decrease. However, the government prioritized creating a system that would benefit those who had endured two world wars in quick succession, addressing less-than-adequate medical access. The goal was to provide “the best possible care from the cradle to the grave.”
In contrast, the U.S. appears to favor a system where citizens invest significant amounts in health insurance, which often leads to underutilization or refusal to cover substantial medical bills. This can be seen as a representation of status and financial prowess, without realizing that eventually, such premiums will not yield the desired fiscal benefits.
The medical system and insurance companies often lie or misrepresent the evidence and facts to maintain their profitability. This mistrust and misinformation further contribute to the reluctance to protest via tax deductions or other means.
Understanding these issues is crucial in the ongoing debate about healthcare reform in the U.S. By recognizing the structural and cultural barriers, policymakers and citizens can hopefully begin to advocate more effectively for a truly universal and accessible healthcare system.