House Committee Passes U.S. Rep. McSally Bill Halting Tax Hike
WASHINGTON, D.C. – The House Ways and Means Committee today favorably approved U.S. Representative Martha McSally’s legislation, the Halt Tax Increases on the Middle Class and Seniors Act, clearing a major hurdle for the bill in Congress. The legislation reverses a tax hike contained in the President’s health care law on middle class families and stops it from taking effect on seniors.
“For the past year, we’ve worked hard to build the support needed to move this bill ahead in Congress,” said Rep. McSally. “We’ve gathered support from members of both parties and advocacy groups, made the case to the relevant committee, and continued to raise awareness of this looming tax hike on seniors. Our seniors worked hard their entire lives for a secure retirement. They should not be on the hook now for the massive new spending authorized under the health care act, and I will continue to fight to stop this tax hike on them and roll it back on middle class families.”
On September 22, Rep. McSally introduced the Halt Tax Increases on the Middle Class and Seniors Act with bipartisan support. Last month, she spoke before the Ways and Means Committee, the committee of jurisdiction, to urge members to take action on the bill.
The little known tax hike contained in the Affordable Care Act was brought to Rep. McSally’s attention by a local Green Valley constituent, Loren Thorson. Rep. McSally spoke in honor of Thorson and his dedicated efforts to raise awareness of this issue last year on the House floor.
Rep. McSally presents to Green Valley constituent Loren Thorson Congressional Record comments recognizing his efforts to protect seniors. Thorson passed away on March 8, 2016.
Currently, the IRS allows Americans with high health care costs to deduct certain out-of-pocket expenses from their taxes. Before 2013, individuals could deduct out-of-pocket medical costs that exceeded 7.5 percent of one’s Adjusted Gross Income. The Affordable Care Act changed this for Americans under the age of 65 by increasing the threshold to 10% of a person’s AGI – effectively raising taxes on middle class Americans. The increase is scheduled to go into effect on seniors 65 and over starting on January 1, 2017.
The Halt Tax Increases on the Middle Class and Seniors Act reverses this increase on both seniors and Americans under 65.