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Congressman Doug LaMalfa

Representing the 1st District of California

Rep. Doug LaMalfa Votes to End Costly Tax Increase on Middle Class & Seniors

Sep 13, 2016
Press Release

Washington, DC – Rep. LaMalfa today voted in favor of H.R. 3590, the Halt Tax Increases on the Middle Class and Seniors Act, a bill to repeal a costly Obamacare tax increase on out of pocket medical expenses. Stopping the tax from being implemented is estimated by the Joint Tax Committee to save seniors several hundred dollars annually. The bill passed on a 261-147 vote and will now be considered in the Senate.

LaMalfa released the following statement on the vote:

“We took action today to reverse a tax increase on out of pocket medical expenses for middle class families and prevent it from being imposed on seniors. At a time when so many in this country are battling high health care costs, the last thing we should be doing is creating another unnecessary financial burden on seniors and those struggling with serious medical conditions.

“Since its passage, Obamacare has brought with it an onslaught of new taxes, skyrocketing premiums, increased out-of-pockets costs, and even more difficulty accessing quality care. I have voted repeatedly to repeal this broken system and replace it with one that actually offers workable solutions. However, in the meantime, I will continue to work to provide relief to everyday Americans who cannot afford to struggle anymore under this law.” 

Currently, the IRS allows Americans with high health care costs to deduct certain out-of-pocket expenses from their taxes. Prior to Obamacare, individuals could deduct costs exceeding 7.5% of their Adjusted Gross Income. The law changed that to 10% of one’s AGI for Americans under 65, with the same increase is set to go into effect for seniors starting on January 1, 2017. 

According to Americans for Tax Reform, in 2012, 10.2 million families used this provision with an average of under $8,500 in medical expenses claimed. More than half of these families made less than $50,000 per year. H.R. 3590 stops this tax increase and restores the lower threshold for medical expenses.

Congressman Doug LaMalfa is a lifelong farmer representing California’s First Congressional District, including Butte, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou and Tehama Counties.