Tax cut for self-insured Utahns passes House

The House voted Friday for an $18 million tax cut for self-employed Utahns who buy their own health insurance.

HB351 by Rep. Jim Dunnigan, R-Taylorsville, is reflected in an overall health care reform bill, HB133, which has already passed the House. If something should happen to HB133, at least the tax cut would go forward.

"This achieves some fairness in the tax code," Dunnigan said. "It will help some afford health insurance, and it may take some Utahns off of the uninsured roles."

Currently, if your health care insurance cost is taken out of your paychecks by your employer, it is pre-tax dollars. But self-insured Utahns pay state income tax first on the money they then spend on health insurance premiums. Saving those self-employed Utahns 5 percent (the statewide personal income tax rate) on those premiums could add up to a $900 annual savings for some self-employed Utahns, Dunnigan said.