SENIOR ASSEMBLY FEDERAL PROPOSAL NO. 7

INTRODUCED BY SENIOR ASSEMBLY MEMBER LOPES

LEGISLATIVE COUNSEL’S DIGEST

AFP 7: FEDERAL INCOME TAX DEDUCTIONS: MEDICAL EXPENSES.

UNDER EXISTING LAW, FEDERAL INCOME TAX DEDUCTIONS ARE ALLOWED FOR QUALIFIED MEDICAL EXPENSES, TO THE EXTENT THAT THE AMOUNT PAID, WHEN GROUPED TOGETHER WITH ALL OTHER QUALIFYING MEDICAL EXPENSES, EXCEEDS 7.5 PERCENT OF THE TAXPAYER’S ADJUSTED GROSS INCOME.

THIS MEASURE WOULD MEMORIALIZE THE CONGRESS AND THE PRESIDENT TO ENACT LEGISLATION THAT WOULD ALLOW ALL QUALIFIED MEDICAL EXPENSES TO BE FULLY DEDUCTIBLE FOR ANY PERSON WHO IS 65 YEARS OF AGE OR OLDER.

VOTE: MAJORITY.

AFP 7: RELATING TO TAXATION

WHEREAS, MOST SENIOR CITIZENS LIVE ON A FIXED INCOME; AND

WHEREAS, THE COST OF MEDICAL EXPENSES ARE INCREASING MORE AND MORE EACH YEAR, MAKING IT DIFFICULT FOR SENIOR CITIZENS TO PAY FOR THESE INCREASED EXPENSES; AND

WHEREAS, THE PRESENT FEDERAL INCOME TAX LAW ONLY PERMITS A SENIOR CITIZEN COUPLE FILING A JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF $40,000 TO DEDUCT MEDICAL COSTS THAT EXCEED $3,000 ON THEIR TAX RETURN; AND

WHEREAS, THE AMOUNT OF REVENUE LOST TO THE FEDERAL GOVERNMENT BY ALLOWING ALL QUALIFIED MEDICAL EXPENSES TO BE FULLY DEDUCTIBLE FOR ANY PERSON WHO 1S65 YEARS OF AGE OR OLDER, AS COMPARED TO THE ECONOMIC AND HUMANE BENEFIT TO SENIOR CITIZEN TAXPAYERS, IS MINIMAL; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2006 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT ALL QUALIFIED MEDICAL EXPENSES FOR ANY PERSON 65 YEARS OF AGE OR OLDER BE FULLY DEDUCTIBLE FOR PURPOSES OF FEDERAL INCOME TAXES; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE CONGRESS AND THE PRESIDENT TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT AND VICE PRESIDENT, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE CHAIRPERSONS OF THE HOUSE AND SENATE COMMITTEES ON AGING, AND TO EACH SENATOR AND REPRESENTATIVE FROM CALIFORNIA IN THE CONGRESS OF THE UNITED STATES.

RN20061898704

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