But few, if any, support expensing capital investments while also allowing an interest expense deduction.
Taken together, this provision and the change in the medical expense deduction are expected to raise more than $40 billion of revenue over 10 years.
At present, the medical expense deduction and certain interest deductions are limited, and those subject to it cannot take the deductions for state and local taxes and certain miscellaneous items at all.
He said people who help support elderly parents could include the parents' costs in calculating a medical expense deduction, provided that they pay the medical bills directly rather than giving money to the parents so they can pay them.
Extending some measures enacted at the end of 2010 –- the payroll tax cut for employees, the capital investment expensing deduction and long-term unemployment benefits –- would add little to the long-run fiscal gap and would boost the flagging recovery.
Further, there are several tax provisions that expire at the end of 2011 that are known as the "traditional" extenders package, which include individual and business provisions like the teacher expense deduction, state and local sales tax deduction, and the research and development tax credit.
The measure also eliminates the medical-expense deduction for most abortions and ends the availability of reimbursement for abortion costs from medical savings accounts — changes that could invite intrusive inquiries from I.R.S. auditors trying to confirm whether an abortion procedure fell within exceptions for rape, incest or when the life of the woman is endangered.
Bowen said Labor would support the government's changes to the taxation of working and holiday visa holders, the abolition of the large family bonus, the removal of the zone tax offset for fly-in, fly-out workers, changes to work-related car expense deduction methods, and the "no jab, no pay" policy for children's immunisation.
That is because the limit on benefits provided by defined benefit plans is rising to $140,000 in 2001 from $135,000 in 2000, after cost-of-living adjustments announced by the I.R.S. ANOTHER adjustment may also be of interest to retirees and people planning for retirement: an increase for 2001 in the amounts of long-term care insurance premiums that may be included in any medical expense deduction.
