But AARP continues to lobby lawmakers to retain the medical expense itemized deduction and its return to the 7.5 percent income threshold, as well as the creation of a new, non-refundable tax credit for working family caregivers.
Although the Senate legislation retains the medical expense deduction—unlike the House bill, which repeals this important deduction entirely—the Senate bill does not address the 2017 tax hike on seniors. The income threshold for the deduction for those aged 65 and older increased from 7.5 percent to 10 percent in 2017.
“AARP urges that the medical expense deduction be retained at the 7.5 percent income threshold for older tax filers,” Jenkins said. “Nearly three-quarters of tax filers who claimed the medical expense deduction are age 50 or older and live with a chronic condition or illness, and 70 percent of filers who claimed this deduction have income below $75,000. Maintenance of this important deduction is critical financial protection for seniors with high health-care costs,” she added.
AARP is also opposing repeal of Obamacare’s individual mandate requiring taxpayers to buy health-care insurance. The group says a repeal of the mandate will increase costs and cause millions of Americans to lose health insurance coverage.
“The CBO estimates that elimination of the requirement that individuals have health care will result in 13 million fewer Americans with health coverage over the next 10 years,” Jenkins said. “CBO also estimates that it will cause premiums in the health insurance marketplace to increase by approximately 10 percent. As a result, premiums for 64-year-olds could increase by an average of $1,490.
“For the reasons given, AARP cannot support the Senate Tax Cuts and Jobs Act in its current form,” Jenkins told senators earlier today. “We urge Congress to work in a bipartisan manner to enact tax legislation that better meets the needs of older Americans and the nation, and we stand ready to work with you toward that end.”
Debate on the bill continues on the floor of the Senate, which may vote on the measure as early as this evening, lawmakers said.