Minnesota House Bill HF1891

Minnesota 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

Individual income tax provisions modified, and subtraction for health insurance premiums provided.

Impact

The introduction of HF1891 is significant as it represents the state legislature's intention to provide financial relief to residents facing escalating healthcare costs. By allowing a tax subtraction for health insurance premiums, the bill is expected to lead to a reduction in the taxable income for many Minnesotans, thereby lowering the overall tax liabilities for those who are enrolled in health insurance plans. This change could potentially encourage more individuals to obtain health insurance, knowing that their premiums would be partially compensated through tax savings.

Summary

House File 1891 proposes modifications to individual income tax provisions in Minnesota, particularly focusing on the subtraction of health insurance premiums from taxable income. The bill amends various sections of Minnesota Statutes, allowing taxpayers to subtract the amount spent on health insurance premiums from their income, which aims to alleviate the tax burden on individuals who pay for their health insurance. The effective date for this bill is set for taxable years beginning after December 31, 2022, which would make it applicable to the 2023 tax year and beyond.

Contention

While supporters of HF1891 argue that the tax subtraction is a necessary step toward making healthcare more affordable, there may be concerns regarding the bill's fiscal impact on the state's revenue. Opponents may highlight the need for comprehensive healthcare reform rather than piecemeal tax adjustments like these. Additionally, questions may arise about whether the proposed changes adequately address the broader issues of healthcare accessibility and affordability, or if they simply serve as a short-term fix for a long-standing problem.