The AARP is unhappy with one piece of House Republicans' tax plan, which could end up forcing the GOP to change its proposal.
The House and Senate have both unveiled versions of the GOP's tax reform proposal, which would cut rates across the board and make changes to certain types of deductions. The AARP has a problem with a section of the House's proposal that would erase the medical expense deduction.
"Getting rid of the deduction amounts to a health tax," the organization said in a recent statement.
Northwestern University professor of strategy Craig Garthwaite told Business Insider the AARP's opposition to the removal of the deduction may lead to lawmakers changing their mind.
"Never bet against the AARP," Garthwaite said.
According to Business Insider, the current law allows people who spend more than 10 percent of their annual income on medical expenses to lower their taxable income by way of a deduction. The website gave an example of someone who spent $20,000 of their $60,000 income on medical expenses, which would lower their taxable income to $46,000.
"Eliminating the medical expense deduction would be a huge burden for millions of Americans with high medical costs — especially middle income seniors," AARP Executive Vice President Nancy LeaMond said. "AARP backs the efforts of Rep. [John] Larson and others to remove this harmful provision from the bill and urges the House to support protection of the medical expense deduction.
"Beyond this important amendment, we also urge Congress to work together to find common sense solutions that make the tax code fair for all Americans."
As Business Insider points out, the removal of the medical expense deduction is not in the Senate version of the tax proposal, so it's still unclear whether it would be included in the final bill.
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