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Why should I pay for other people’s healthcare when I can barely my afford my own?The reason you can barely afford your own health care is due to the fact you don’t want to pay for other people’s.In subscribing to the idea that a ‘socialised’ health care system is simply you paying for ‘other people’s’ you allow and encourage the privatised health care monopoly which is existent in no other developed nation other than the US.In every other developed country it is common for people to check their list of symptoms before deciding whether or not to seek medical assistance.Only in the US is it common for people check their list of symptoms, then their insurance documents and/or bank balance, before deciding whether or not to seek medical assistance.Taking my own country as an example: In the U.K. we pay National Insurance. This is a proportionate percentage of our salary which goes towards funding the NHS - our health care service, in case we ever need it.In the US you pay, or have as part of your salary, a health insurance premium which goes towards funding your healthcare in case you ever need it.What’s different? We’re both paying for something called insurance each month that goes towards funding any healthcare we may need.‘What’s different, Paul, is that your premium doesn’t pay for just you, it pays for everyone else whether they work or not, to receive the same level of care as you. That’s unfair!’Is it? Let’s compare.Which am I more okay with? In System 1 the money I pay goes directly into a pot which funds the very same facilities I will rely on if I ever need them, and yes, funds the care of other people who will use the same facilities when I’m not doing.In System 2 the money I pay goes directly into a pot which will only fund the facilities I will rely on if I need them if and when I need them. The rest of the surplus cash goes directly into various shareholders’ pockets and funds the lifestyle of said parties.In System 1 I’m paying for a new MRI machine I hope I’ll never have to use but other people will see the benefit of in the meantime. In System 2 you’re paying for a new yacht you’ll definitely never get to use but a certain few other people will see the benefit of.Thanks for opting for the Chemotherapy, John!Image creditWhich is more unfair?In System 1 that premium I pay every month means I that I will receive a comparable [1] level of care without ever having to pay anything more than the equivalent of $10 for a course of medication. My premium is unaffected regardless of how much medical care I need in the long or short term.In System 2 I’d have to pay a cost up-front which would be (hopefully, depending on the plan) offset by the premium I pay, and face an ever increasing level of monthly premium depending on how much care I require. In terms of maximum cost there is theoretically no ceiling to how much I may have to pay.The worse my condition is, the more it’s going to cost me. The notion that the worse my condition the less capable I may be of working to fund this ever increasing cost to maintain a quality of life is, apparently, a ‘me problem’.All we’re saying Paul, is it’s only a few small deliveries and since you’ve now got your own personal transport…Image CreditContinuing in this vein, in System 1 I pay a flat percentage, or a tax if you will, of whatever my income is towards my healthcare. The more I earn the more I pay but this is proportionate. I’d miss 10% of a £1000 monthly income as much as I’d miss 10% of £10,000 monthly income. This amount won’t change regardless of how much care I or any of my family needs. As a result this is not a ‘perk’ of any particular job. It’s the same in any career. The right to this care is not something my employer can use as part of a negotiation when discussing remuneration for my work.Sorry, we can’t offer you any more money, but who needs food when clearly the dental on offer here is second to none, am I right?Image creditIn System 2 the amount I will pay towards healthcare is dependent on a number of factors including my profession, geographic location, current level of health or the health needs of my family. This is all subject to change depending on the fluctuations of the private market which has been constructed around it. A comparable level of cover will cost me the same if I’m on $1000 a month as someone who is earning $10,000 per month. The difference here is I’ll definitely miss that flat fee of, say $500 or 50% of my income more than the $10,000 per month person will miss 5% of theirs.System 1 means everyone can earn at least £162 per week without paying a penny, 12% of whatever you earn up to the next £730 per week on top of that goes towards your healthcare (and more but we’ll just stick to health here) and if you’re in a well-paid job where you earn over £892 per week just 2% of everything over that is taken towards National Insurance [2]. For this you get all the healthcare, doctor’s appointments, therapies, surgeries etc that you will ever need with no extra cost like co-pays or deductibles.System 2 is anyone’s guess. Depending on the insurance company, your employer, your medical history and needs and that of your dependents, where you live and what you do then the cost can vary quite wildly. And not everything is covered and there’s a good chance you’ll still need to pay towards whatever care you need on top of that.Yet there are those who would fight tooth and claw to keep System 2 over System 1. Because either:They would rather pay more and for any unused premiums to go to making shareholders richer rather than helping other people or improving healthcare facilities they may one day need when they don’t immediately need them, or…System 1 is ‘socialist’.Which brings me on to my next point. The concept of public healthcare is marketed to the people in the US as socialist healthcare.In every other country where it’s available it’s referred to as universal healthcare.This labelling here is important.Whilst everyone recoils from socialism as being anathema to the American virtue of working hard to provide a better life they view universal healthcare as a way of rewarding those who don’t want to work.But rewarding them with what exactly? The luxury of still breathing?God grandpa, it was your choice to retire. If you wanted to keep the heating on AND treat your arthritis you should have kept working at the factory. You’d already done 50 years - another 10 wouldn’t hurt. Now you expect us to help pay for you? What’s your fucking problem?!Image creditThis is where it gets confusing. In the US you have the god-given, inalienable right to freedom, liberty, and justice. You have the right to own a firearm and speak and walk freely without undue persecution or hinderance.But you want to actually be alive to excercise these rights?Sorry Joe, you’re gonna have to pay us for that.There’s the difference. Healthcare in other developed nations is seen as a right. The right to life and a quality of life. In the US it’s seen as a consumable, a product, a luxury that (and I’m aware of the ridiculousness of this statement) something you can maybe afford to live without?Universal healthcare is not some Marxist, socialist, communist nightmare. The rich are not ceaselessly punished for being successful. Take the figures I quoted earlier on the rates of contribution to national insurance. If you’re on a low income (less than £162 per week) then you need that money for things like food and shelter and other necessities. You pay nothing.If you’re earning over £162 up to £1000 you still don’t get charged anything on the first £162 of your weekly income, that’s yours. Then it’s 12% of whatever you earn between £162 and £892 each week. Most of us fall under this category [3].But whereas under the awful socialist construct the unwashed masses should then pursue the rich and successful for every penny to feed the poor and unwilling to work types, you are instead charged 2% (yes 2%, not 12% or 20% or 99% like some would have you believe the so-called dirty socialist model calls for) on anything you earn over £892 per week.I’ve heard about them golden eggs of yours, now share with the state you flappy bourgeois bastard!Image creditTo put this into context, the average US salary is $857 per week [4] or £656. In terms of national insurance for universal healthcare you would pay £59.28 or $77.53 per week. Taking a monthly salary on an income of $3,714 you would pay $335.18 each month. That’s for complete, comprehensive health cover for you and your family with no co-pays or deductibles apart from maybe $10 for a prescription - regardless what drug the prescription is for. Oh and if anyone in your family is under 16 and needs a prescription it’s free. And if you earn less than £162 per week the prescription is also free. And if your children are over 16 but studying then it’s free too.The average monthly US health insurance payment is $308 [5] . For an individual. Before co pay. Or deductibles. Regardless of your income.I’m fairly sure if I was to open an insurance company in the US that offered complete and totally comprehensive health insurance with no co-pay or deductibles ever that covered you and all your immediate family for a flat $335 per month I’d be inundated with applications.I told you we shouldn’t have gone for the 90,000 lumen signage, the electricity bill is going to be massive…Image creditI’m also fairly sure I’d be bullied and slandered into shutting down pretty quickly by the existing industry also who would lose an absolute fortune to me.And so we finally get to it.The reason so much time, money and marketing is railed against the idea of universal healthcare in the US: There are too many people who are making too much cash that can use said cash to preserve the industry they have made which profits from people’s unquestionable desire to continue to remain not-dead.But what about the cost? Won’t someone think of the deficit?The US government spends an average of $10,224 per year on healthcare for each person [6], roughly twice as much as most other countries spend. Yet the life expectancy of a US citizen is the same, and in many cases actually lower [7]than other countries who spend much less. Many of which have universal healthcare systems.Add to this the fact that the US is the only country in the world that also has a health insurance industry worth well over $800 billion per year [8] to further back it up and you have to wonder how exactly this money is being spent.Oh, it’s completely necessary for work, it gets me from A to B…Image creditSo, going back to our two system comparison. You have System 1 which would:Provide a comparable level of care to System 2.Cost around half that of System 2 to the country.Would mean that every individual has comprehensive health cover without the need for private health insurance from cradle to grave.Will cover everyone equally regardless of whether you have less money in the bank than the next person.Includes no co-pay or deductibles.Means the biggest charge you can be hit with is $10 regardless of treatment.Couldn’t be used by employers as a bargaining chip to offset actual liveable wages.Removes the shareholder and for-profit systems that opens up the system to abuse in pursuit of revenue over care.Or System 2 which will:Provide a comparable level of care to System 1.Roughly consume twice the government budget spend on health care that System 1 would.Require everyone to pay into a plan whose cost fluctuates depending on your health, job or where you live, from cradle to grave.In many cases expect you to pay even more if you have the damn cheek to actually need to use the service on top of what you have been paying each month for the privilege of knowing that you can use the service.On top of any poor physical health may proceed to add insult to injury by bankrupting you if you or your child / loved one are unfortunate enough to need more care than you can afford.Can charge you whatever the market wants with by creating an entire private industry around treatments.Will give you a level cover which is intrinsically tied to whatever your financial worth is at that moment in time. Rest assured with this system you really can put a price on a persons worth.Will be used by employers as a tool of negotiation to pay you less in terms of actual salary each month in return for varying levels of cover.Has institutions who are run with the express intention of making money from you first, and offering care second. The rest are bound by the same market forces which are affected by such for-profit organisations and as such are likely to charge similarly compounded fees.So obviously, System 2, or the US Healthcare System as it is known to the rest of us simple minded folk is the right choice for the savvy consumer. If only the rest of the world could get out from under the heel of our socialist oppressors and see the light.Still, at least you’re not paying for other people right?That would be silly.Image creditEDIT: OP has expanded upon the original question in the comments below, please see these for further discussion.Footnotes[1] List of countries by life expectancy - Wikipedia[2] National Insurance rates and categories[3] Earnings and working hours[4] The Average American Monthly Salary[5] Health insurance costs in the United States - Wikipedia[6] How does health spending in the U.S. compare to other countries? - Peterson-Kaiser Health System Tracker[7] List of countries by life expectancy - Wikipedia[8] Revenue of U.S. life and health insurance industry 2017 | Statistic

By Proper Investment it can be made Rs. Zero, Yes Tax Payable= Zero RupeePlease Refer below Article by CA Chirag Chauhan(expertmile.com)The Article gives you brief idea on how to save tax and at the same time make proper investment and cover insurance and Medical expenses risk.Investment in 80C for Purpose of taking full benefit of 1.5 LakhsDeduction under 80C is related to deduction that an individual can deduct from his gross taxable income in order to reduce his tax liability by investing in specified investment. It is applicable to individuals and HUF. An assessee can get deduction under section 80C upto a maximum of Rs.150000.The qualifying investments and expenditure as deduction under 80C are investment in Insurance Policy, Post Office Time Deposit Account, Investment in Equity Linked Saving Scheme (Mutual Funds), Public Provident Fund, National Saving Certificate, Tuition Fees Paid, Bank Fixed Time Deposit, Repayment of Principal of Housing Loan, SukannyaSamriddhi account.2.Investment in National Pension Scheme up to Rs 2 LakhsFinance Minister ArunJaitley in Budget 2015-16 introduced an additional income tax deduction of Rs. 50,000 for contribution to the New Pension Scheme (NPS) under Section 80CCD. NPS is a voluntary pension scheme, which is regulated by the Pension Fund Regulatory and Development Authority.This extra deduction of Rs. 50,000 on NPS will increase the total deduction allowed under Section 80C and 80CCD of Income Tax Act to Rs. 2 lakh. In Budget 2016, the finance minister has made withdrawals from NPS on maturity tax free upto 40% of the total corpus accumulated. Currently, none of the withdrawals were tax-free unlike other competing instruments such as PPF and EPF where the total withdrawal was tax -free. This is a major step towards making the NPS scheme more attractive and bringing it on par with the other EEE pension schemes. The Budget 2016 proposes to provide a uniform tax treatment to the recognised provident fund, national pension system and superannuation fund.It is proposed that 40% of the pension wealth received by an employee from the National Pension System Trust shall be exempt.3.Home Loan Interest and House Rent Allowance (up to Rs 2.5 Lakhs or Rs 60 Thousand)Employess gets HRA as a part of Salary. If the Employee is living in rented accommodation they can Claim HRA benefit and save on taxes. If the Employee is staying with parents in that case too they can pay rent to parents and Claim HRA benefit.For employees who don't get HRA benefits, the FM raised the deduction against house rent from Rs 2,000 per month to Rs 5,000. This would result in tax savings in the range of Rs 3,708 to Rs 12,204, depending on the income slab.Further in Budget 2016 First time home buyers to get additional deduction of Rs 50,000 on interest for loan uptoRs 35 lakh. This additional deduction has been given on interest for loan up to Rs 35 lakh, provided the house value doesn't exceed Rs 50 lakh. For, the 2016-17 Budget proposes tax relief on interest payment on home loan if the property bought, or under construction, is completed within 5 years from the end of the financial year in which the loan was availed instead of the current 3 years.Assuming a loan of Rs 35 lakh to be paid over 20 years, the annual deduction comes to around Rs 2.5 lakh, including the Rs 2 lakh currently available. At 9%, the interest outgo in the first year would be Rs 3.12 lakh. So, the buyer will save Rs 75,000 if he is in the 30% tax-bracket4.Tax Free Medical Allowance and Transport Allowance up to Rs 40 ThousandMedical reimbursement and Transport Reimbursement can be claimed by the employee and it will be taken care in form 16 itself. For Medical Bills Employee needs to submit proof of expenditure incurred.5.Medical insurance for Self, Parents and Dependents up to Rs 50 ThousandPayment of premium on life insurance policy and health insurance policy not only gives insurance cover to a taxpayer but also offers certain tax benefits.Medical insurance premium paid by assessee, being individual/HUF by any mode other than cash.Sum paid by assessee, being individual on account of preventive health check-up. Medical expenditure incurred by assessee, being individual/HUF on the health of a very senior citizen person provided that no amount has been paid to effect or to keep in force an insurance on the health of such person.6.Leave Travel Allowance Up to Rs 25000An LTA is the remuneration paid by an employer for Employee’s travel in the country, when he is on leave with the family or alone. Amount from LTA is tax free. Section 10(5) of the Income-Tax Act, 1961, which provides for the exemption and outlines the conditions subject to which LTA is exempt.7.Reimbursement of Expenses for Mobile, Travel, newspaper as actualsMany employers provide reimbursement ofTravel Expenses, Mobile and Phone Bill and for News Paper. Employee has to submit proof of expenditure.8.Meal Coupons up to Rs 10 thousandIs Food Coupon like Sodexo coupons which are very famous given by employers to employee. Most of time employers and employee are not aware of taxability of food coupon and assume they are exempted.9.Relief under Section 87ABudget has increase the relief under section 87A from Rs 2000/- at present to Rs 5000/-. So effectively if taxable income is less then Rs 5 Lakhs an individual can Claim relief of Rs 5000/- in taxes paid. If we consider 10% slab rate it turnout to be Rs 50000/- as additional benefit which can be claimed in this SectionForm the above Picture it is clear that if the Individual plan in proper manner for the year 2016 -17 financial year he can not only save taxes but can also plan an investment in Resident Property if he is not owing one. For Retirement benefit NPS seems to be better option considering current changes in Budget 2016.Source :Article by CA Chirag Chauhan on https://expertmile.com

1. Exemption of House Rent AllowanceA salaried individual having a rented accommodation can get the benefit of HRA (House Rent Allowance). This could be totally or partially exempted from income tax. However, if you aren’t living in any rented accommodation and still continue to receive HRA, it will be taxable. Also, it is important to note that if one couldn’t submit his/her rent receipts to their employer as proofs to claim HRA, one could still claim the exemption while filing the income tax return. So, please keep rent receipts and evidence of any payment made towards rent. The least of the following is allowed as the HRA exemption to a salaried employee:Total HRA received from your employerRent paid less 10 percent of (Basic salary +DA)40 percent of salary (Basic+DA) for non-metros and 50 percent of salary (Basic+DA) for metros2. Standard DeductionThe Indian Finance Minister during his speech while presenting the Union Budget 2018, announced a standard deduction amounting to Rs 40,000 for salaried employees. This has replaced the existing transport allowance of Rs 19,200, and medical reimbursement of Rs 15,000. As a result, salaried people can avail an additional income tax exemption of Rs 5800 with effect from FY 2018-19. The limit of Rs. 40,000 has been increased to Rs. 50,000 in the Interim Budget 2019.3. Leave Travel Allowance (LTA)The income tax law also provides for an LTA exemption to salaried employees, restricted to travel expenses incurred by such employee. It is important to note here that the exemption doesn’t include costs incurred for the entire trip such as shopping, food expenses, entertainment and leisure among others. LTA is allowable for two travels in a block of four years. In case an individual doesn’t use this exemption within a block, he/she could carry the same to the next block. Below are the restrictions which are applicable to LTA:LTA only covers domestic travel and it doesn’t cover the cost of international travelThe mode of such travel must be either railway, air travel, or public transport4. Section 80C, 80CCC and 80CCD(1)Section 80C is the most extensively used option for saving income tax. According to this section, an individual or a HUF (Hindu Undivided Families), who invests or spends on stipulated avenues, can claim deduction up to INR 1.5 lakhs. Expenditures/investment u/s 80C isn’t allowed as a deduction from income arising due to capital gains. It means that if the income of an individual comprises of capital gains alone then Section 80C cannot be used for saving tax. Deductions under Section 80C of the Income Tax Act, 1961 are offered for the investments made in a range of instruments. Some of these instruments are more well-known than the others due to various reasons. The Indian government too supports a few as the tax saving instruments for encouraging individuals to save and invest towards retirement. Some of such investments are given below which are eligible for an exemption under Section 80C, 80CCC and 80CCD(1) upto a maximum of Rs 1.5 lakhsLife insurance premiumEquity Linked Savings Scheme (ELSS)Employee Provident Fund (EPF)Annuity/ Pension SchemesPrincipal payment on home loansTuition fees for childrenContribution to PPF AccountSukanya Samriddhi AccountNSC (National Saving Certificate)Fixed Deposit (Tax Savings)Post office time depositsNational Pension Scheme5. Medical Insurance Deduction (Section 80D)Section 80 D is a deduction, provided for medical expenses. Deduction under this Section is available over and above the deduction under 80C. One could save tax on medical insurance premiums paid for the health for self, family and dependent parents. These expenses could be deducted from overall taxable income. The limit for Section 80D deduction is Rs 25,000 for premiums paid for self/family. For premiums paid for parents who are senior citizens, one can claim a deduction upto Rs 30,000. This limit has been raised in Budget 2018 from Rs 30,000 to Rs 50,000. i.e. effective 1 April 2018, one can claim upto RS 50,000 as a deduction for premium paid for senior citizen parents. Additionally, health checkups to the extent of Rs 5,000 are also allowed and are covered within the overall limit of Rs 25,000 and Rs 50,000 as the case may be.6. Interest on home Loan (Section 80C and Section 24)Another key tax saving tool is the interest paid on the home loans. Homeowners have the option to claim up to INR 2 lakhs as a deduction for interest on home loan for the self-occupied property. If the house property is let out, the deduction is allowed for the entire interest pertaining to such home loan. However, here it becomes essential to note that from FY 2017-18, the loss from house property that can be set off against other sources of income has been restricted to Rs 2 lakhs. In addition to the above, one can also claim the principal component of the housing loan repayment as a deduction under 80C upto a maximum limit of Rs 1.5 lakhs. 7. Deduction for Loan for Higher Studies (Section 80E) Income Tax Act provides exemptions for interest on education loans. The significant conditions attached to claiming such deduction are that the loan should have been taken from a bank or a financial institution for pursuing higher studies (in India or abroad) by the individual himself or spouse of his children. Further, one may begin claiming this deduction beginning from the year in which the loan starts getting repaid and up to the next seven years (i.e. total of 8 assessment years) or before repayment of the loan, whichever is earlier. Every legal guardian could avail this income tax exemption. Read more about deductions from Section 80E. 8. Deduction for Donations (Section 80G) Section 80G of the Income Tax Act, 1961 offers income tax exemption to an assessee who makes donations to charitable organizations. This deduction varies based on the receiving organization, which implies that one may avail deductions of 50% or 100% of the amount donated, with or without restriction. Read more about Section 80G 9. Deduction on Saving Account Interest (Section 80TTA) Section 80TTA of the Income Tax Act, 1961 offers a deduction of INR 10,000 on income earned in the form of bank interest. This exemption is allowed to Individuals and HUFs. The maximum limit of deduction under this section is INR 10,000. In case the income from bank interest is less than INR 10,000, the whole amount will be allowed as a deduction. However, in case the income from bank interest exceeds INR 10,000, the deduction Would be restricted to INR 10,000. 10. Additional Deduction for interest on home loan (Section 80EE) · Section 80EE allows the home owners to claim an additional deduction of Rs.50,000 (Section 24) for interest paid towards a home loan. Provided, the loan must not be for more than Rs 35,00,000 and the value of the property must not be more than Rs 50,00,000. Furthermore, the individual must not have any other property registered under his name at the time the loan is sanctioned.