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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 numbers, however, show that eliminating the medical expense deduction could significantly harm millions of middle class taxpayers, especially older taxpayers.
The medical expense deduction is a tax benefit targeted to members of the middle class who have extraordinary medical expenses—that is, expenses exceeding 10 percent of their income.
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