One of the many Obamcare tax hikes was an income tax increase that increased the threshold at which Americans could deduct out of pocket medical expenses. Prior to Obamacare, this threshold allowed Americans to deduct any out of pocket medical expense that exceeded 7.5 percent of their annual adjusted income, but Obamacare raised this threshold to 10 percent. This increase has a large effect on many including the elderly who typically have high medical expenses and the least flexibility in their income.
Representative McSally (R-AZ) has introduced legislation, H.R. 1051, the Halt Tax Increases on the Middle Class and Seniors Act, to put a stop to these Obamacare tax increases and provide much needed tax relief for seniors and the middle class. Last year, the legislation passed with bipartisan support with a vote of 261-147 and as such, it should have no problem being passed again this year. Americans for Tax Reform supports this legislation and urges all members of Congress to support it as well. See the letter here or below:
February 16, 2017
The Honorable Martha McSally
United States House of Representatives
510 Cannon House Office Building
Washington, D.C. 20515
Dear Congresswoman McSally,
I write in support of H.R. 1051, the Halt Tax Increases on the Middle Class and Seniors Act, legislation to stop Obamacare’s 2017 tax increases on out of pocket medical expenses and provide tax relief to Americans. This piece of legislation easily passed in the last Congress with large bipartisan support and will most likely pass again with widespread support.
Seniors and the middle class bear the brunt of Obamacare’s tax increases. Prior to passage of Obamacare, Americans could deduct out of pocket medical expenses that exceed 7.5 percent of their adjusted annual income. 10.2 million families used this tax provision in 2012 with an average of under $8,500 in medical expenses claimed. More than half of the families that used this provision made less than $50,000 per year.
Thanks to Obamacare, this threshold increased to 10 percent for most families, and on January 1, 2017 it also increased for seniors. This tax hike represents President Obama once again violating his “firm pledge” against “any form of tax increase” on any American earning less than $250,000.
Typically, the elderly have the costliest medical expenses and require greater medical care. In addition, they typically no longer have an influx of income, instead relying on their savings. Obama’s tax increase from 7.5 to 10 percent will have a ringing effect on seniors, who often no longer have an influx of income.
H.R. 1051 stops this tax increase on seniors and reinstates the older, lower threshold for medical expenses for all Americans. This tax hike represents yet another way Obamacare has hurt American families, who were already struggling to receive the medical care they need.
Americans for Tax Reform supports the Halt Tax Increases on the Middle Class and Seniors Act and urges all members of Congress to support and co-sponsor this important legislation to relieve Obamacare’s tax burden on the middle class and seniors.
Grover G. Norquist
President, Americans for Tax Reform