The House of Representatives today voted 227-205 to approve the Tax Cuts and Jobs Act (H.R. 1), legislation to reform the tax code. Among other changes, the bill would eliminate hospitals’ ability to access low-cost capital financing through tax-exempt private-activity bonds and advance refunding bonds. In addition, the bill would impose a 20% excise tax on pay for certain nonprofit hospital employees. In the area of changes to the personal tax code, the bill would repeal the itemized deduction of medical expenses beginning next year, and eliminate the deduction for contributions to Archer medical savings accounts. The bill does not make any changes to the Affordable Care Act’s individual mandate or individuals’ ability to itemize deductions for charitable giving. AHA had urged Ways and Means leaders to reject proposals that would eliminate tax-exempt private-activity bonds, and expressed concern about the 20% excise tax for certain hospital employee compensation and deduction for people with high medical costs. The Senate Finance Committee continued to mark up its own tax reform bill today. 

Related News Articles

Headline
The Health Resources and Services Administration yesterday awarded 80 rural consortia $1 million each to help prevent, treat and support recovery for patients…
Headline
Offering a government insurance program reimbursing at Medicare rates as a public option on the health insurance exchanges could place as many as 55% of rural…
Headline
In a commentary published in Academic Medicine, experts outline how academic medicine, medical education, public health agencies, hospital associations and…
Headline
The Health Resources and Services Administration today awarded 27 organizations up to $750,000 each to develop new rural residency programs while achieving…
Blog
AHA staff recently visited two rural hospitals to see and hear firsthand how leaders are engaging in innovative practices to increase accessibility and…
Headline
Nine in 10 voters say access to health care in rural communities is important, and three in five would be more likely to vote for a candidate who prioritized…