Relief Greets Tax Bill Passage From Senior Provider Groups
Relief was expressed by senior living provider groups yesterday at Congress’ passage of H.R. 1, the Tax Cuts and Jobs Act, 2017.
Relief: Provisions Of the Bill
The bill lowers the top individual tax rate from 39.6% to 37%. It reduces the corporate tax rate from 35% to 21%. Most important, it also eliminates the Affordable Care Act’s individual mandate that penalizes people who don’t have health insurance.
Relief came for the provider groups, because the bill maintains the medical expense tax deduction used by many senior living residents and preserves the use of tax-exempt private activity bonds to finance acquisitions, new construction and renovations by not-for-profit organizations. The original House of Representatives version of the bill had eliminated the medical expense deduction as well as private activity bonds.
Members advocated intensely in favor of these tax provisions. In addition, Argentum and the American Health Care Association also had advocated for the medical expense deduction.
The ability to deduct medical expenses is critical for elderly residents and their families who pay for long-term care out of pocket. Private activity bonds are an important source of financing for many of the aging population. This will help with their growing need for health solutions and housing.