The American Brain Coalition has identified several provisions in the Tax Cuts and Jobs Act, some in the the short-term, some in the long-term, and all of equal concern, that would impact patients, providers and researchers.
- The House version of the bill would remove a patient's ability to make itemized deductions for out-of-pocket medical expenses that exceed ten percent of their adjusted gross income. As a result, tax relief for expensive medical care would end.
The House version of the bill would make pursuing a STEM higher education more expensive by:
- Requiring that graduate students' tuition waivers to be counted as income, making them subject to taxes;
- Repealing the ability for students to deduct up to $2,500 of student loan interest;
- Repealing the ability for employees to exclude from income up to $5,250 per year in employer-provided education assistance for graduate and undergraduate courses;
- Consolidating the existing American Opportunity Tax Credit, Hope Scholarship Credit and Lifetime Learning Credit into a single, modified American Opportunity Tax Credit.
- The orphan drug tax credit was created to incentivize companies to invest in the development of drugs that only benefit a small number of people. The Senate and House bill would reduce or repeal, respectively, an orphan drug tax incentive which currently reimburses drug developers for half of their research costs on treatments meant for diseases with patient populations fewer than 200,000 people.
The ABC has written
to Congress about these concerns, but we need your help to show that constituents care about these changes. Write to your Senators and ask that any or all of these provision be removed from the final bill before they even consider supporting it.