House votes to roll back Obamacare tax hike

The House vote of 261-147 passed a bill that would keep intact the threshold for determining how much a taxpayer can deduct from his tax return for medical expenses. The vote drew a veto threat from the White House.

Currently, people under 65 years old can deduct medical expenses that exceed 7.5 percent of their adjusted gross income. The Affordable Care Act would increase the threshold to 10 percent.

The bill would keep the threshold at 7.5 percent.

Republicans said the bill, the Halt Tax Increases on the Middle Class and Seniors Act, was necessary to help provide relief to taxpayers as healthcare costs have increased.

“This Obamacare provision is a tax hike plain and simple,” said Rep. Kevin Brady, chairman of the House Ways and Means Committee, on the House floor Tuesday. “It makes paying for care more difficult.”

Lawmakers noted that the increase in the threshold could disproportionately affect seniors and the middle class, especially with healthcare costs rising.

“You see premiums going through the roof and deductibles going sky high,” said Rep. Bob Dold, R-Ill.

Democrats charged that Republicans are being hypocritical as rolling back the increase would increase the deficit by nearly $33 billion over the next decade.

“This bill does not include any offsets to address this cost,” said Rep. Sander Levin, D-Mich. “This is a vivid contradiction of worn-out Republican rhetoric, claiming time and time again to be concerned about the deficit of this country.”

Levin mentioned Republican rhetoric on not approving new funding to fight the Zika virus, instead opting to take money from other programs.

The White House issued a veto threat late Monday on the bill. A White House statement said it would repeal a provision of Obamacare “that limits a regressive, poorly targeted tax break for health care spending. This repeal would disproportionately benefit high-income Americans, while increasing national health care spending.”