Senate Bill: Millions of Older Americans Could See Higher Tax Bills

The Senate Finance Committee (SFC) recently passed its tax reform proposal — the “Tax Cuts and Jobs Act.” This bill, like the House-passed tax legislation, warrants the attention of older Americans. Not only because it increases taxes on some taxpayers 65+, but also because it would trigger rules that, barring congressional action, would result in automatic cuts to federal programs. According to the non-partisan Congressional Budget Office, those cuts would be $136 billion in fiscal year 2018, $25 billion of …

Tax Reform: Don’t Count Your Tax Savings Too Soon

If you’ve been following the twists and turns of the ongoing tax reform efforts moving along in Washington, you’ve likely noticed proponents often repeating a particular theme: tax cuts for middle-class Americans. But tax policy is rarely simple, and it is important to look beyond the headlines to understand if this is really the case. How do Americans age 65 or older fare under the proposed legislation? In an effort to understand the implications of the tax proposals for Americans …

A Closer Look at the Medical Expense Deduction

The tax reform bill (HR 1, the “Tax Cut and Jobs Act”) recently introduced in the House of Representatives makes a number of substantial changes to the tax system, including eliminating the itemized deduction for high medical expenses. The stated goals of such changes are to make the tax system simpler and provide tax relief for the middle class. The numbers, however, show that eliminating the medical expense deduction could significantly harm millions of middle class taxpayers, especially older taxpayers. The …

Taxes on Social Security, Prescription Drugs, Food?

Tax reform proposals are bubbling up in a number of states across the country as elected officials look for ways to stimulate the state’s economy or revamp outdated tax codes. Sometimes, however, a key element gets lost in the debate: what’s fair. Right now, in North Carolina, state leaders are working on a variety of proposals that would force North Carolinians to pay new taxes on the things they count on most, including the basics of everyday living. One Senate …