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Could You Qualify For the New $25,000 Health Care Tax Deduction Coming in 2026?

December 8, 2025 · Personal Finance
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Photo by Stock-Asso from Shutterstock

A Broader Republican Push for “No-Tax” Policies

Hawley’s proposal comes just months after the passage of a massive Trump-backed 2025 GOP tax and spending package, which expanded or created several new tax breaks. That legislation included deductions or exemptions tied to:

  • Car loan interest
  • Overtime wages
  • Tip income for service workers

Together, these measures reflect a broader Republican messaging strategy centered on the idea of “no taxes” on categories of income or spending associated with working-class Americans. Hawley’s “No Taxes on Healthcare” framing fits squarely into that trend, extending the concept beyond wages and into daily living expenses.

However, unlike the tax relief tied to income (overtime, tips), Hawley’s proposal focuses on consumer spending, specifically medical spending—a category that is among the fastest-growing household expenses in the country.

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