Give Credits for Long-Term Care, Not for Vacations - Wall Street Journal

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July 5, 2020 11:07 am ET

A lone container cycles around an otherwise empty baggage carousel in Denver International Airport as travelers deal with the effects of the new coronavirus on June 10.

Photo: David Zalubowski/Associated Press

Regarding your editorial “The GOP’s Lampoon Vacation” (June 30): Sen. Martha McSally proposes a tax credit for taxpayers who travel more than 50 miles for their vacations. As you correctly note, “credits that directly reduce tax liability are much more generous than mere deductions that reduce taxable income.”

Put premiums for long-term care on the top of the list of expenses that should get tax credits. Currently these premiums can be itemized as part of medical expenses that exceed 10% of adjusted gross income. With the new tax laws that raised the standard deduction, however, there is no real tax benefit for carrying long-term-care policies. Premiums for long-term care should have the same tax treatment as contributions to individual retirement accounts (IRAs), currently benefiting from tax credit. Both expenses encourage taxpayers to provide for old age.

Hanna Hill

Minneapolis

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