The Five Most Outrageous Things Buried in the GOPs Tax Bill

Last edited Sun Nov 5, 2017, 02:05 AM - Edit history (1)

by Scott Bixby at the Daily Beast

https://www.thedailybeast.com/the-five-most-outrageous-things-buried-in-the-gops-tax-bill

"SNIP..........

But buried within the text of the 429-page bill are provisions that Ryan didn’t mention at the legislation’s unveiling. Some policies, such as killing state and local income tax deductions and ending student-loan deductions, have been floated in the past as ways to slash tax rates without exploding the deficit. But other proposals contained in the Republican plan—from killing deductions for rare-disease research to ending tax benefits for adopting a child—would hit some vulnerable taxpayers where they least expect it.

Eliminated: Credits for Disability, Deductions for Age & Medical Expenses

Currently, individuals can deduct most out-of-pocket medical expenses that exceed 10 percent of their annual adjusted gross income—that is, taxable income minus deduction-based deductions. But under the proposed plan, that deduction would be eliminated. For individuals or families with high out-of-pocket medical bills, such as the elderly or the chronically ill, killing the deduction could mean major tax increases.

The AARP came out against ending the deduction, which is largely utilized by seniors with low or fixed incomes and increasing medical costs. Calling the proposal one of several “areas of concern” within the Republican plan, AARP executive vice president Nancy LeaMond said in a statement that “eliminating the medical expense deduction amounts to a health tax on millions of Americans with high medical costs—especially middle-income seniors. AARP is strongly opposed to this provision.”

Even healthy elderly taxpayers face the eliminations of popular tax breaks. The House bill also repeals the 15 percent tax credit for all taxpayers 65 and older, who can cut up to $5,000 from their tax bills as an individual or up to $7,500 for married seniors. The same credit is utilized by taxpayers under 65 who are retired on permanent disability.

..........SNIP"