2007 State of the Union address: on Health Care

George W. Bush: $7,500 tax deduction for health insurance

Tonight, I propose a standard tax deduction for health insurance that will be like the standard tax deduction for dependents. Families with health insurance will pay no income or payroll taxes on $15,000 of their income. Single Americans with health insurance will pay no taxes on $7,500 of their income.

At the same time, this reform will level the playing field for those who do not get health insurance through their job. And for the millions of other Americans who have no health insurance at all, this deduction would help put a basic private health insurance plan within their reach. Changing the tax code is a vital and necessary step to making health care affordable for more Americans.