FISCAL NOTE
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to provide tax credits to those people paying for qualified medical expenses, or health insurance, or both medical expenses and health insurance.
As written, this bill would allow a credit against personal income tax liability of up to $2,500 for single filers and $5,000 for joint filers for medical care expenses, not reimbursed by an insurance company, or for the cost of health insurance paid by the taxpayer. As a result, the passage of this bill could result in a approximate loss of about $1.0 billion per year to the General Revenue Fund.
There would be no additional administrative costs to the State Tax Department.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2011 Increase/Decrease (use"-") |
2012 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
-1,000,000,000 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to provide tax credits to those people paying for qualified medical expenses, or health insurance, or both medical expenses and health insurance.
As written, this bill would allow a credit against personal income tax liability of up to $2,500 for single filers and $5,000 for joint filers for medical care expenses, not reimbursed by an insurance company, or for the cost of health insurance paid by the taxpayer. As a result, the passage of this bill could result in a approximate loss of about $1.0 billion per year to the General Revenue Fund.
This estimate is based upon average health care expenses in the U.S. (including health insurance costs) by income level and average tax liabilities, by income level, for income tax filers in the State.
There would be no additional administrative costs to the State Tax Department.
Memorandum
The stated purpose of this bill is to provide tax credits to those people paying for qualified medial expenses, or health insurance, or both medical expenses and health insurance.
This bill is very broad in nature. There is no definition of “expenses incurred for medical care” or “expenses incurred for health insurance.” Also there is no effective date in the bill
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov