Congresswoman Martha McSally

Representing the 2nd District of Arizona

U.S. Rep. McSally Introduces Bill to Stop Tax Hike on Seniors, Middle Class Families

September 22, 2015
Press Release

WASHINGTON, D.C. – U.S. Representative Martha McSally today introduced legislation to reverse a tax hike contained in the President’s health care law on middle class families and stop it from taking effect on seniors. The Halt Tax Increases on the Middle Class and Seniors Act has bipartisan support and would make it easier for families battling high health care costs to deduct those expenses.

“Contained in the Administration’s health care law is a little known tax hike that hits millions of middle class families and seniors struggling with sickness or high medical costs – at a time when they are at their most vulnerable,” said Rep. McSally. “My bill repeals this debilitating tax hike on families and stops it from hitting seniors. This provision was brought to my attention by a constituent from Green Valley who has serious concerns about the tax hike’s effect on him and his neighbors, and I share those concerns. America’s seniors and those struggling to get ahead should not be on the hook to fund the government’s massive new health care spending. I’m proud to introduce this commonsense legislation with my Arizona colleague Congresswoman Sinema and will continue to work with my colleagues in the House and Senate to get it passed.”

“Arizonans continue to struggle with increasing health care costs,” said Congresswoman Sinema.  “This commonsense legislation allows Arizona seniors and families to deduct more of their out-of-pocket health care expenses, a relief sorely needed during tough economic times. I look forward to working with Congresswoman McSally and my colleagues on both sides of the aisle to help lower health care costs for Arizonans.”

Currently, seniors can deduct out of pocket medical expenses that exceed 7.5 percent of their adjusted growth income (AGI) on their taxes. A provision contained in the Affordable Care Act would increase this threshold to 10% on January 1, 2017 for Americans over the age of 65, amounting to a tax increase on seniors.

Under the health care law, this tax hike has already gone into effect on Americans younger than 65, and low to middle-income families have been hit the hardest. In 2012, 87% of households that claimed this deduction earned less than $100,000 (IRS Statistics of Income, table 2.1). Repealing the provision would help the 10 million people who claim this deduction.

The bill has the wide support of seniors and taxpayer advocate groups, including AARP, Americans for Prosperity, 60 Plus, Americans for Tax Reform, the Association of Mature American Citizens, and the National Taxpayers Union.

For a PDF of the bill text, click HERE.