WASHINGTON, D.C. – Virginia Senator Dick Black (R-Sterling) and Delegate Bob Marshall (R-Manassas) recently introduced SB 673, legislation that would prevent two of the twenty tax increases in Obamacare from hitting Virginia taxpayers. Today Americans for Tax Reform (ATR) announced its full-throated support for this legislation and calls on all Virginia legislators to join Sen. Black and Del. Marshall in standing up for taxpayers throughout the Commonwealth by supporting SB 673.
SB 673 would amend the Code of Virginia to deconform Virginia tax rules from the Patient Protection and Affordable Care Act (Obamacare). Virginians would be able to deduct the increased expenses from their state returns which result from the new threshold of unreimbursed medical expenses – Obamacare raised this threshold from 7.5% to 10%.
The second thing SB 673 does is protect Virginians from the increased expense that comes from Obamacare’s reduction in the allowance of tax deductible contributions to flex spending accounts. Obamacare caps such tax deductible contributions at only $2,500 – prior to Obamacare, taxpayers could make unlimited contributions to their flex accounts under federal law. Sen. Black and Del. Marshall’s bill would effectively preserve the present tax rules on Virginia state returns, thereby preventing two tax increases that would have otherwise taken effect with the implementation of Obamacare.
“By introducing SB 673, Senator Black and Delegate Marshall are taking a bold stand in defense of Virginia taxpayers, whom are currently scheduled to face the largest federal tax increase in U.S. history in less than twelve short month,” said ATR president Grover Norquist. “In moving to block two of the twenty tax increases imposed by Obamacare, Senator Black and Delegate Marshall have distinguished themselves as taxpayer heroes and have taken one of the most significant steps of any lawmaker in the country to protect their constituents from the onslaught of tax increases coming from Washington.”
SB 673 has been referred to the Senate Committee on Finance. A hearing date has yet to be set.
“Under current law, on January 1, 2013, Virginians will be hit with higher federal income tax rates, higher taxes on marriage and family, a middle class death tax, higher tax rates on savers and investors, and employer tax hikes. SB 673 would help mitigate the adverse economic impact of this tax tsunami for Virginians,” Norquist continued. “Their legislation is a positive step in curbing the federal overreach and job-killing tax increases signed into law by President Obama and is a model for state legislators across the country to follow.”