LeadingAge Statement on the Proposed Tax Cuts and Jobs Act

Legislation | November 03, 2017 | by LeadingAge Advocacy Team

LeadingAge opposes any tax legislation that eliminates the medical expense deduction, changes charitable deductions, or eliminates tax exemptions for the development and preservation of affordable housing.

LeadingAge Statement on the Proposed Tax Cuts and Jobs Act

LeadingAge opposes any tax legislation that eliminates the medical expense deduction and private bond funding, changes charitable deductions, or eliminates tax exemptions for the development and preservation of affordable housing.

Those who are older will find the bill’s elimination of the medical deduction a bitter pill to swallow. For them, it was the one deduction that could offset taxes on their investments, pension income, and social security checks. Their taxes will rise and their lifestyle choices will shrink.

We also oppose the elimination of private bond funding both because it impacts low-income housing as well as effectively eliminates 501(c)(3) organizations from developing or renovating CCRCs/Life Plan Communities.

Most of our members rely on charitable donations to bridge the gap between Medicaid reimbursements and the actual costs of care. Any changes to that tax deduction, indirectly accomplished by the bill’s increase of standard deductions, will widen the gap. Many of our communities, particularly in rural areas, will face the harsh choice of curtailing services or closing.

Repealing tax incentives to facilitate the production of affordable housing means, as the bill does by eliminating the tax exemption for multifamily housing bonds and ending 4% housing credits, a longer wait for our frailest, poorest, and oldest Americans. But the ripple effect of that one change could make affordable housing unaffordable not only for the greatest generation but for the wave of baby boomers. With fewer and fewer projects, prices will rise and will force Americans to age in place depending only on the help of friends and neighbors.

America’s families will be shocked by the changes in the tax code.

We urge our members, their staff, and residents to tell Congress to:

  • Maintain the medical expense deduction.
  • Maintain private bond funding.
  • Maintain the exemption for Multifamily Housing Bonds and the 4% Low-Income Housing Tax Credit.
  • Maintain the charitable deduction (currently retained in the Nov. 2 version of H.R. 1).