The tax cut in the health reform law, which is estimated to reduce nationwide income taxes by more than $110 billion in 2014 alone, will be provided through tax credits to offset a portion of the cost of health insurance premiums. Nevadans’ tax reductions will be about $1.1 billion in that year.
Those figures are among the key findings of a report for Nevada released today by the health care consumer group, Families USA, which commissioned the Lewin Group to use its economic models to estimate how many individuals in the state would benefit from the new premium tax credits.
Titled “Lower Taxes, Lower Premiums: The New Health Insurance Tax Credit in Nevada,” the report states that the new tax credits target middle-income families.
For families of four, the tax credits, provided on a sliding scale, are focused on families with annual incomes between $29,327 and $88,200.
People with annual incomes at or above 200 percent of the federal poverty level — $44,100 for a family of four in 2010 — will constitute two-thirds of the people who will be eligible for a premium tax credit.
However, because the size of the tax credit is determined on a sliding scale based on income, 56 percent of the money will be targeted at families with incomes below 200 percent of the poverty level.
“This is the largest middle-income tax cut in history, and it will enable many hard-working Nevadans to afford health insurance premiums that have stretched family budgets,” said Ron Pollack, executive director of Families USA.
“The tax cut will not only put significant extra cash in Nevadans’ pocketbooks, but it will also ease the burden of families’ growing health care costs,” Pollack said.
There are about 143,200 uninsured Nevadans who will be eligible for the tax credits, and another 144,200 eligible people who are currently insured but are still struggling to afford coverage.