Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — due to healthcare reform, according to the Joint Committee on Taxation, Congress’s official scorekeeper.
The new law raises $15.2 billion over 10 years by limiting the medical expense deduction, a provision widely used by taxpayers who either have a serious illness or are older.
Taxpayers can currently deduct medical expenses in excess of 7.5 percent of their adjusted gross income. Starting in 2013, most taxpayers will only be able to deduct expenses greater than 10 percent of AGI. Older taxpayers are hit by this threshold increase in 2017.
Once the law is fully implemented in 2019, the JCT estimates the deduction limitation will affect 14.8 million taxpayers — 14.7 million of them will earn less than $200,000 a year. These taxpayers are single and joint filers, as well as heads of households.
“Loss of this deduction will mean higher taxes for 14.7 million individuals and families making under $200,000 a year in 2019,” Sen. Chuck Grassley (R-Iowa) told The Hill. “The new subsidy for health insurance would not be available to offset this tax increase for most of these households.”
So much for those campaign promises from Barack Obama that those of us earning less than $250,000–Or was it $200,000? And didn’t Joe Biden say that the threshold was $150,000 at one point?–would not see a single dime in increased taxes.
These deductions are especially relied upon by millions of Americans, often the most sick among us. And with so much of the president’s rhetoric focused on the purported heartlessness of the private insurance industry, it is immensely disturbing that those who are ill or those with high out-of-pocket medical expenses will have to absorb more costs. These are our seniors. These are our special needs families.
And yet the Democrats are perceived by so many as the party that cares. Go figure.