The Families in Training (FIT) Tax Credit

I would like to express my support of a potentially revolutionary way of using fiscal policy to encourage a healthier society that spends less on health care while stimulating a depressed U.S. economy. I would like the 111th U.S. congress to consider introducing the Families in Training (FIT) tax credit. The FIT tax credit would be awarded to members of working American families that are considered to be of a “normal” and healthy weight. This will be determined by using the body mass index (BMI), a statistical measure of body weight based on a person's weight and height. A person’s age, gender, and ethnicity will work in conjunction with the BMI measure in order to best determine what is considered a “normal” BMI rating.

The first objective of the FIT tax credit is to significantly reduce health care spending in the U.S. over the next decade. This will be achieved by incentivizing Americans to live healthier lifestyles in their attempt to attain a BMI rating that will earn them the FIT tax credit. People who attempt to lose weight but fall short of a BMI rating that earns them a credit will have gotten relatively healthier with no cost to the government. The reduction in health care spending that is a result of people who become eligible and from those who make an attempt but fall short will more than pay for the credits awarded.

Children will be eligible for a partial FIT tax credit. This will encourage parents to help their children learn better eating habits that in turn will result in future generations that are healthier. The FIT tax credit will provide families with a financial incentive to hold each other accountable to their health goals. Ultimately, the FIT tax credit will motivate families to improve their health while reducing health care spending by more than the cost of the credits.

The second objective of the FIT tax credit is to stimulate a U.S. economy that is currently in a recession. This will be achieved by putting money in the hands of millions of Americans that qualify for the FIT tax credit but specifically the lower income families who spend a higher percent of their income. These lower income families will not save the tax credit but will spend it quickly on living expenses. Therefore, the FIT tax credit will stimulate consumer demand that in turn will create jobs.

The lower income families will benefit more than the upper middle-income families because the FIT tax credit will have a greater economic impact on the lower class. Therefore, the lower income families will have more financial incentive to live healthier lifestyles in their attempt to qualify for the tax credit. This works well in helping reduce government spending on health care because the lower income families are the largest segment of the Medicaid and Medicare populations.

I propose a $1,000 FIT tax credit for all Americans that make $100,000 or less per year and that fall within the “normal” BMI rating. Fit married couples that make $200,000 or less per year would be eligible to receive up to a $2,000 tax credit. Americans who are eligible will receive $250 per fit child for a maximum of three children. The maximum an eligible fit family could be awarded is $2,750 per year. If families expect to get paid for becoming healthier they may choose to spend some of that money in advance on things they might have not afforded prior to the tax credit like healthier foods, exercise equipment, and gym memberships. These additional resources could assist middle and lower income families in reaching their health goals in ways that they have not had in the past.

People will be directed to a web based BMI calculator where they can type in their age, height, weight, gender, and ethnicity in order to determine if they qualify for the FIT tax credit. If eligible for the tax credit, they will be directed to a FIT station located in their town where a government official can validate their BMI rating.

Results from the 2008 National Health and Nutrition Examination Survey indicate that about 74% of U.S. adults aged 20 years and older are overweight, obese, or extremely obese. Therefore, 26% of U.S. adults are considered to be of average or below average weight. During the first year, 26% of the approximately 100 million workers that make $100,000 or less and up to three children per parent or married couple would qualify for the FIT tax credit. Under these conditions approximately 26 million workers and 60 million children would qualify for the credit for an estimated cost of 41 billion dollars.

The cost of implementing the FIT tax credit is relatively small in comparison to the 1.1 trillion dollars spent by the U.S. government in 2009 on health care. If implemented over multiple years the FIT tax credit is likely to reduce U.S. government spending on health care by more than it costs to award additional credits to an increasingly healthier population. Therefore, the FIT tax credit would more than pay for itself over the long term and the net savings could be used to help pay down the 13 trillion dollars of U.S. government debt.

I hope congress will consider using the FIT tax credit as a tool to help reduce health care spending and to stimulate the economy. Thank you for your time. For more information visit www.fittaxcredit.com

Sincerely.