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2016 Issue 2 | GearedUp
46
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PHIT Act Continued from page 45
“ The club won’ t lose out on that percentage, but the member will see savings as they’ re not taxed on the dues,” detailed Life Fitness President Chris Clawson.“ Encouraging participation in physical activity will help bring a major shift to this country in fighting the inactivity pandemic. We need to change the way the country thinks about activity – and when that happens, our whole industry benefits.”
The PHIT Act of 2015“ amends the Internal Revenue
Code to allow a medical care
tax deduction for up to $ 1,000
($ 2,000 for a joint return or a
head of household) of qualified
sports and fitness expenses. The
bill defines‘ qualified sports and
fitness expenses’ as amounts
paid exclusively for the sole
purpose of participating in a
physical activity, including:( 1) for
membership at a fitness facility,
( 2) for participation or instruction
in physical exercise or activity,
or( 3) for equipment used in a
program( including a self-directed
program) of physical exercise or
activity.”
Obesity and a sedentary lifestyle contribute to high blood pressure, high cholesterol and heart disease; stroke; sleep apnea and other breathing disorders; some cancers; and mental illnesses like depression and anxiety, according to the Centers for Disease Control and
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Prevention( CDC). The CDC also reports that essentially all causes of death can be caused or exacerbated by obesity and lack of physical activity, and Americans spend around $ 74 billion each year on physical inactivityrelated medical costs.
Beyond basic health and quality of life issues, the National League of Cities reports that the annual health care costs of obesity in the United States are a whopping $ 190.2 billion, or about 21 percent of all annual health care spending. The costs don’ t end there: In the workplace, researchers from Yale University estimate that lost productivity and increased absenteeism related to obesity cost the nation around $ 8 billion per year.
Lack of physical activity is a major cause of increased obesity in the U. S. and higher rates of expensive – but preventable – chronic illnesses. To combat these issues, many politicians are looking at how to help improve the health and wellness of their constituents, and financial incentives have worked in the past to encourage things like home ownership, retirement savings and higher education. The PHIT Act will do the same by providing financial incentive for investing in one’ s health and wellness.
The PHIT Act was introduced in the Senate in October 2015 by U. S. Sens. John Thune( R-SD), Chris Murphy( D-CT), Johnny Isakson( R-GA) and Joe Donnelly( D-IN). PHIT was introduced in March 2015 in the House by Reps. Charles Boustany( R-LA) and Ron Kind( D-WI).
“ Americans are living healthier, more active lifestyles and prioritizing wellness and prevention for themselves and their families,” said Thune.“ The PHIT Act encourages families to continue living a healthy lifestyle by making it easier for them to purchase certain fitness-related items using money they’ ve already saved in their flexible spending accounts and health savings accounts. My hope is that the PHIT Act incentivizes others to join this movement as well.”
While PHIT is estimated to cost about
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$ 2.5 billion dollars over 10 years, research shows its cost will be more than offset by savings in health care as Americans become more active.
“ The World Health Organization( WHO) estimates that for every dollar spent on physical activity, it generates a savings of $ 3.20 per person in medical expenses, which means the PHIT Act, if passed, could generate a savings of more than $ 8 billion for the U. S. in health care expenses over the course of the next 10 years,” said Jim Baugh, founder of PHIT America, a campaign in support of increasing physical activity in the U. S.“ This shows the PHIT Act is true health care – preventing health care costs.”
PHIT America, located online at www. phitamerica. org, holds a wealth of information and the latest news on the PHIT Act. In addition, site visitors can enter their home ZIP code to automatically send messages of support for the PHIT Act to their representatives in Congress.
Clearly, passing the PHIT Act will benefit the average American, but it also will benefit Planet Fitness franchisees. The tax benefit will decrease the overall cost of fitness club memberships, personal training, exercise classes and more, which is predicted to increase overall participation in these activities.
“ I believe that the majority of people sign up at PF ® because of convenience( close proximity to their house or work route) combined with our price point and JFZ,” Sebald continued.“ With that said, nothing changes here as we have the most health clubs in the country, still offer the best price and still offer the best
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