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Congressman Bob Latta (R-Bowling Green) joined his colleagues in the U.S. House of Representatives to pass H.R. 3590, the Halt Tax Increases on the Middle Class and Seniors Act on Tuesday. The bill rolls back a middle-class tax increase imposed by Obamacare and stops a similar tax increase on seniors poised to take effect in 2017. Before the passage of Obamacare, taxpayers were allowed to deduct a major medical expense if it exceeded 7.5% of their annual income. However, the 2010 law changed this provision by increasing the income threshold to 10%, making it more difficult to deduct significant medical expenses. While this provision has been in effect for Americans under the age of 65 since 2014, taxpayers of all ages will face the higher threshold starting next year.

“Collapsing exchanges, higher premiums, and less access to health care – President Obama’s flagship legislation is looking worse and worse by the day,” said Latta. “To the detriment of countless Americans, Obamacare is still managing to get even worse. Making it more difficult for patients who have suffered major medical expenses to deduct it on their tax bills is counterproductive and callous. With seniors about to feel the brunt of this tax starting next year, the House took needed action to rollback this tax hike.”

Middle-class seniors will face the biggest brunt of the higher threshold impact should it go into effect in 2017. According to AARP, more than 30% of high medical expense deductions went to people 65 and older with incomes under $50,000.

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