Health Savings Account Blog

"Our goal is to create a more consumer-driven health care system in Wisconsin, and the first step has to be having access to HSAs," said Sen. Alberta Darling (R-Milwaukee), who sponsored A.B. 4 in the Senate. The bill passed on an 18-14 vote April 25; the General Assembly had passed it 60-36 in February.

"HSAs help people become more motivated," Darling said. "It's their money, and then they become more savvy consumers of health care, because they have a vested interest in it. That will change health care in Wisconsin, because we have some of the highest costs in the country."

The HSA bill would have given state residents a 6.5 percent credit for the amount they claimed as HSA contributions on their federal taxes. But critics, including Doyle, called the tax breaks "elitist," claiming they will benefit only the rich and not the rising number of low-income workers who are choosing HSAs.

State Rep. Mark Honadel (R-South Milwaukee) had this to say:

"Some people say HSAs do not help people of lesser income, and that's just false. If a young person starts in the workforce and starts an HSA, he can save just the same way as the next guy. It's not dependent on wage structure. It just comes down to the fundamental issue of do we want government to take care of us all the time, or do we want to take care of ourselves? A lot of people want to take care of themselves, especially if they're young and healthy."

"Unfortunately, I think our governor is one of the last in the country that continues to veto this legislation, so it's becoming very frustrating," Honadel continued. "As a team in Wisconsin, [the legislature] has been passing very good HSA legislation, but the governor keeps vetoing it. So we either have to get a new governor, or he has to wake up."

Darling said she would reintroduce the bill in the next legislative session.

"We passed [similar] legislation two years ago. We could have been up and running by now," Darling said. "People are going to hear about this in November."

We of course think that HSA contributions should be deductible on Wisconsin state income tax returns. Nevertheless, they are deductible for Federal Income taxes, and can save you up to $1,700 or more each year.

Visit us at http://www.health--savings--accounts.com for information on Health Savings Accounts. You can also see a list of other HSA State Income Tax standings.