Walker will call for passage of the HSA deductibility as part of the “Wisconsin is Open for Business” Special Session in January.
Under existing federal law, individuals may make tax-deductible contributions to health savings accounts and withdraw the money tax-free to cover routine and preventative medical care.
Current Wisconsin law taxes contributions to health savings accounts.
The legislation will align Wisconsin law with federal law and allow tax deductible contributions to and withdrawals from health savings accounts.
Similar legislation passed twice in the 2005 legislative session but was vetoed both times by Governor Jim Doyle.
Past legislative authors are:
- Sen. Alberta Darling (R-River Hills)
- Sen. Luther Olsen (R-Ripon)
- Rep. Dean Kaufert (R-Neenah)
- Rep. Bob Ziegelbauer (I-Manitowoc)
Taxpayers will save $4 million to $8 million in lower taxes if HSAs are tax-exempt.
- HSAs are a vital tool for small businesses as they seek to control spiraling health care costs.
- They are a free market health care tool that allows maximum flexibility for individuals and families to purchase insurance that fit their needs.
- HSAs put control for health care decisions in the hands of employees rather than employers.
- For too long, Wisconsin has needlessly taxed HSAs even when the federal government hasn’t.
- Governor-elect Walker is dedicated to helping Wisconsin businesses create 250,000 new jobs over the next four years.