The opponents of the Missouri Taxpayer Relief Act (MTRA) continue to ignore even the most basic of facts. The reason for ignoring the facts is because they would lose most, if not all, of their major deception points against the MTRA if they acknowledged them!
One of the areas about which they continue to deceive is healthcare. We’ve addressed this issue several times (most recently in Tax Reform Opponents Seek to Deceive and Scare Seniors). Last week, they said that the proponents of the MTRA had not given a satisfactory answer. The fact is, we have – it’s just not one they like!
Let’s look at what the measure actually says in section 1(e):
(6) Sales of pharmaceuticals or medical services by a licensed health care professional for the direct benefit of any individual’s health care, where such sales or services are not subject to being recouped from another source;
The opponents’ deception regarding healthcare revolves around the words “…subject to being recouped….” They say that essentially means all healthcare will be taxed. If they really wanted to know what “recouped” means, they could find out by spending as little as $6.50 for a dictionary!
The opponents are spending a lot of money to oppose tax reform that would bring about the largest economic-activity boost the state has seen in our lifetime. They have engaged some high-priced consultants to aid them. So, just in case they can’t afford the $6.50, I’ve taken the time to give them the simple definition from Merriam-Webster’s Dictionary:
re·coup /rɪˈku:p/ verbre·coups; re·couped; re·coup·ing[+ obj] : to get back (money that has been spent, invested, lost, etc.) : recover
▪ It will be hard for us to recoup the loss. ▪ Movie studios can turn to video sales to recoup the costs of a movie that does poorly at the box office. ▪ She recouped only a portion of her investment. (emphasis added)
As even the most casual observer can see, “recoup” means the recovery of something already expended. It doesn’t mean it was an amount that was not owed or paid.
I don’t know about you, but I’ve never recouped (recovered) my co-pays. Once I’ve paid them, I don’t get them back or “recoup” them. Under the MTRA, co-pays are not taxable as they are not recouped.
I’ve never experienced recoupement of my deductibles either. My agreement with my insurance carrier says I will pay a certain level of deductible before they pick up their portion. I don’t recoup (recover) my deductible from the insurance company once I’ve paid it. Under the MTRA, deductibles aren’t taxable.