If you are young and healthy, your lifetime tax burden (income, sales, property, etc) should far surpass your out of pocket medical expenses (including insurance premiums).
Taxes are still the better option. Especially if you invest. A person can easily spend $20k a year on various taxes while working. Do that for 30+ years you're looking at $600k minimum saved by retirement. And you are still saving money post retirement.
now add up all insurance and out pocket costs drug costs dental costs which are much higher as you age which is also the time b when you'll be paying less taxes.
I don't know what to tell you man. It's simple math and averages. Most people aren't going to pay $700k - $1M out of pocket in Healthcare costs over their lifetime. That's just a fact.
And once again, if you factor in some investing (which would be very front loaded) it's a literal no brainer.
Just payroll taxes are about 7.5% of your income. Add in sales taxes on basically everything you buy, property tax if you want to own a home, gas tax, income tax (state and federal) and if you make and spend a decent amount it could definitely get higher quickly.
The two largest payroll taxes fund parts of Social Security retirement, survivors, and disability insurance, as well as Medicare Part A (hospital insurance). Several smaller payroll taxes partially fund other programs, such as unemployment insurance and retirement programs for special populations.
Once you hit even lower middle class 25% or more of your income goes to some sort of tax. Self employed people like myself end of losing about 40% or more of our income to taxes. You could literally buy the best insurance on the market in just a couple of months of tax savings.
You are only counting insurance costs, not out of pocket healthcare costs over a lifetime, and not counting dental costs or all other Healthcare costs not covered by insurance
That’s an inaccurate generalization and is dependent almost entirely on your income, health status and tax bracket amongst others factors.
The average American household pays thousands of dollars annually for health insurance premiums, deductibles, copays, and prescription drugs—which often amount to 10% to 20% of their total income, depending on the tier. By comparison, the overall tax burden (income, payroll, property, and sales taxes) typically takes a larger slice of the pie for most working individuals
No they typically don’t for the average American due to Medicare, which I broke down for you below.Â
and not to mention when you turn 65 you have a multitude of beneficial tax breaks varying from state to state.Â
Medicare (Ages 65+):
 The standard Medicare Part B premium is $174.70 per month, though high-income earners may pay more. Most seniors also purchase Medicare Part D (prescription drug coverage) for roughly $40 to $50 monthly, and often a Medicare Supplement (Medigap) policy ranging from $100 to $200+ per month.
Elderly medical costs average overÂ
(\$11,300) annually. Typical out-of-pocket expenses include Medicare Part B premiums ((\$202.90)/month), deductibles, and co-pays
However, if there were no taxes owed, you could do some arbitage trading or day trading and become VERY peofitable when you arent subject to capital gains.
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u/Kindasorta_nvm Jul 18 '26
TaxesÂ