To the Editor:
Congressman Erik Paulsen has been urging us to support the Republican tax plan because it is simpler. He even promised we can spend more time with our families instead of having to do our taxes. However, simpler isn’t always better. Life is complex, and sometimes our tax returns reflect that complexity.
In eliminating complexity, this proposed law eliminates some important deductions. Congressman Paulsen called these “loopholes.” I call them important financial strategies to help us some of us while we are in economic hard times.
As most people know, Minnesotans will no longer be able to deduct the taxes they pay to the state. Also eliminated is the health care deduction. This is rarely used because the threshold is high. Currently, you need to spend more than 10 percent of your income on healthcare to claim it. But if someone in your family had cancer treatment, or open-heart surgery, or has a chronic, expensive health problem resulting in high out-of-pocket costs, it is a deduction that can help you stay solvent and not go bankrupt. If grandma is in a nursing home, it is even more tragic. This is a key deduction for many elderly Americans in nursing homes.
Have a kid in college? You can’t deduct education expenses anymore. Paying interest on a college loan? Too bad. Moving to take a new job? Those expenses are no longer deductible.
Raising the standard deduction will mean fewer people will itemize. A married couple will need to be above $24,000 in deductible items for it to make sense. But if you do itemize, you will not be able to add any of these deductions.
These are the kinds of things I would like Congressman Paulsen to talk about with his constituents. However, he refuses to have town hall meetings. He is afraid it would not be productive. Since he won’t talk to us, it is more important than ever that we talk to him. Please contact the congressman and let him know how eliminating these deductions will affect your family.
Gail Anderson, Minnetonka
Sun-Sailor, November 13, 2017