NTU urges all Representatives to vote “YES” on H.R. 3590, the “Halt Tax Increases on the Middle Class and Seniors Act.” This legislation would prevent the implementation of a tax increase on out of pocket medical expenses that is scheduled to take place in 2017.
Under current law, taxpayers can deduct medical expenses which exceed 7.5 percent of their income for that year. However, under the Affordable Care Act this threshold is scheduled to rise to 10 percent in 2017. This will have a disproportionate impact on the middle class and seniors, who are more likely to take advantage of this deduction.
This tax levy would be paid primarily by the middle class. In fact, the average family that claimed this deduction makes $53,000 a year. Seniors will also be disproportionately affected. According to The National Center for Policy Analysis, the average senior spends $4,888 a year on medical expenses, twice as much as the average non-elderly adult. The funds raised by this tax increase, $2 to 3 billion annually, according to the Joint Tax Committee, are a small fraction of the federal budget, but will have an enormous impact on the budgets of American families who would save on average $200 to $400 a year with the implementation of H.R. 3590.
Over 10 million taxpayers every year use this deduction to cushion the burden of medical expenses and this tax increase would cause an undue financial burden to seniors and those struggling with chronic medical conditions.
Roll call votes on H.R. 3590 will be included in our annual Rating of Congress and a “YES” vote will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700