Abstract
<h3>Tighten Medical Deductions</h3> —The Administration's new tax proposals, sent to Congress Jan 24, would reduce medical expense deductions allowed most taxpayers. Itemized deductions, including those for medical expenses, would be subject to a floor of 5% of adjusted gross income. Only that amount of deductions over the 5% floor could be deducted from individuals' income taxes. At present, individuals may deduct medical expenses over 3% of income and drug expenses over 1%. This would be changed to a flat 4% for both medical and drug expenses under the Administration plan. But the amount over this and other itemized deductions would have to total more than 5% of the individual's income before he could claim a deduction. At present, there is no such floor on allowable itemized deductions. Here's how the President explained the proposals in his special tax message to Congress: "The present practice of allowing taxpayers to deduct certain
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More From: JAMA: The Journal of the American Medical Association
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