|
(Washington, D.C.) U.S. Reps. Mike Ross (D-AR) and Melissa Hart
(R-PA) launched Healthcare Week in the House of Representatives today by
introducing bipartisan legislation entitled, “The OTC Medicine Tax Fairness
Act,” which would make over-the-counter medications eligible for a tax
deduction. Senators Jim DeMint (R-SC) and Bill Nelson (D-FL) plan
to introduce companion legislation tomorrow in the Senate.
Currently, the Internal Revenue Service (IRS) code enables a household
to deduct certain medical expenses that are not covered by health insurance
when the costs rise above 7.5% of a household’s Adjusted Gross Income (AGI).
The current IRS code allows the cost of drugs to be included in the deduction,
but only prescription drugs, and insulin. The code also allows the
deduction of acupuncture, bandages, chiropractic care, contact lenses,
hearing aids, crutches, and lab fees.
When medications, such as Claritin, make the switch from prescription
drugs to over-the-counter medications, they are no longer tax deductible.
The legislation introduced by Ross and Hart closes the loophole in current
law to make certain over-the-counter medications such as antacids, allergy
medicines, smoking cessation products and pain relievers tax deductible.
“By providing an additional avenue for low-income citizens to save money
on their everyday medical expenses, this legislation enables hard working
American families to have access to affordable assistance in trying to
control health conditions,” said Ross. “Ailments such as asthma,
migraines, and allergies, if left untreated, can lead to expensive and
unnecessary doctor and hospital visits.”
“As healthcare and medication costs continue to climb, it is essential
that the Congress does everything it can to help families cope with increased
financial burdens. Closing the loophole that exists today in the tax code
will not only help families save money, it will also help them avoid more
expensive healthcare treatments later,” said Congresswoman Hart.
“Our bill also specifically targets those most in need of assistance.
In 2000, about 50 percent of individuals with adjusted growth income under
$20,000 used the medical expenses deduction.”
Ross and Hart cautioned that the OTC Medicine Tax Fairness Act does
not encompass all over-the-counter drugs and eligible medical expenses
must be explicitly defined by the IRS. |
|