Americans for Tax Reform supports Virginia HB 1313, legislation authored by Delegate Bob Marshall that would prevent two of the twenty tax increases in Obamacare from hitting Virginia taxpayers. We urge Virginia lawmakers to pass the legislation during the 2013 session.
HB 1313 would amend the Code of Virginia to de-conform Virginia tax rules from the Patient Protection and Affordable Care Act (Obamacare). Virginians would then be able to deduct from their state returns the increased costs that result from the new threshold under which medical expenses cannot be reimbursed. Obamacare raised this threshold from 7.5% to 10% of adjusted gross income, costing US taxpayers $15.2 billion over 10 years.
Additionally, HB 1313 would protect Virginians from the heightened costs incurred due to 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. This provision in Obamacare is particularly detrimental to families with special needs kids, who have traditionally funded their children’s relatively high education costs through these tax deductible accounts.
HB 1313 would simply preserve present tax rules on Virginia state returns, thereby preventing two tax increases that would have otherwise taken effect with the implementation of Obamacare. While much of the Obamacare’s tax changes are out of legislators’ hands, HB 1313 represents an opportunity for state lawmakers to help cushion the blow of this massive federal tax increase, over 80% of which was scheduled to begin taking effect this year.
HB 1313 is an important and innovative step forward in curbing federal overreach and job-killing tax increases signed into law by President Obama. As such, we urge Virginia legislators stand up for their constituents by supporting and voting for HB 1313.