AMENDED IN SENIOR ASSEMBLY OCTOBER 27, 2009

SENIOR ASSEMBLY FEDERAL PROPOSAL NO. 8

INTRODUCED BY SENIOR ASSEMBLY MEMBER LOPES

LEGISLATIVE COUNSEL'S DIGEST

AFP 8: PERSONAL INCOME TAXES: DEDUCTIONS: MEDICAL EXPENSES.

UNDER EXISTING FEDERAL INCOME TAX LAW, A DEDUCTION IS ALLOWED FOR QUALIFIED MEDICAL EXPENSES THAT EXCEED 7.5 PERCENT OF THE ADJUSTED GROSS INCOME OF THE TAXPAYER.

THIS MEASURE WOULD MEMORIALIZE THE CONGRESS AND THE PRESIDENT TO ENACT LEGISLATION THAT WOULD ALLOW A DEDUCTION FOR ALL QUALIFIED MEDICAL EXPENSES FOR TAXPAYERS 65 YEARS OF AGE OR OLDER.

VOTE: MAJORITY.

AFP 8: RELATING TO TAXATION

WHEREAS, MOST SENIOR CITIZENS LIVE ON FIXED INCOMES; AND

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

WHEREAS, THE FEDERAL INTERNAL REVENUE CODE ALLOWS A SENIOR COUPLE FILING A JOINT RETURN, WITH AN ADJUSTED GROSS INCOME OF $40,000, TO DEDUCT ON THEIR TAX RETURN ONLY MEDICAL EXPENSES THAT EXCEED $3,000 OR 7.5 PERCENT; AND

WHEREAS, THE AMOUNT OF REVENUE LOST BY THE FEDERAL GOVERNMENT BY ALLOWING ALL QUALIFIED MEDICAL EXPENSES TO BE FULLY DEDUCTIBLE FOR ANY PERSON WHO IS 65 YEARS OF AGE OR OLDER, AS COMPARED TO THE ECONOMIC AND HUMAN BENEFITS TO TAXPAYERS WHO ARE SENIOR CITIZENS 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 2009 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT ALL QUALIFIED MEDICAL EXPENSES FOR ANY PERSON 60 YEARS OF AGE OR OLDER BE FULLY DEDUCTIBLE; 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 TAXATION, AND TO EACH SENATOR AND REPRESENTATIVE FROM CALIFORNIA IN THE CONGRESS OF THE UNITED STATES.

RN 09 16343

- 0 -