ADA urges grassroots action to promote tax reform priorities

Association supports tax policies for dental practices, student debt relief

The ADA is asking members to remind Congress to support the Association’s proposed tax reforms, all of which benefit dental practices and patients. 

With tax filing preparation on the horizon, an Action Alert went out Dec. 18 outlining the ADA’s goal to aid dentists — especially small businesses, associate dentists and dental students — through tax reform policies.

“Please email your members of Congress and ask them to support these tax reforms,” the alert said. “In doing so, they can show their support for dentists, dental students, and the patients they serve.”

The ADA’s highest priorities on tax policy include pass-through entities, pre-tax dollars for health care, expensing, cash accounting and student debt relief.  

In a Dec. 11 letter addressed to Ways and Means Committee Chairman Rep. Jason Smith, R-Mo., and Ranking Member Rep. Richard Neal, D-Mass., the ADA thanked the committee for holding a hearing related to tax policy and economic growth, emphasizing that many dental practices are small businesses, with some organized as pass-through entities or S Corporations, and others as C Corporations. 

“Because of the diversity of business organizations in the dental community, the ADA’s interests straddle both the business and individual portions of the tax code,” the Association said in the letter.

Firstly, the ADA shared its support for fair treatment of business income generated by pass-through entities. This includes support for the Main Street Tax Certainty Act, which would make permanent the 20% deduction created by the Tax Cuts and Jobs Act. 

The ADA also expressed support for expanding and increasing the flexibility of health savings accounts and flexible savings accounts, as well as returning the FSA limit to $5,000 rather than the current limit of $3,050 for 2023. 

“The ADA believes the reduced amount is a step back for consumers when the cost of health care continues to increase and adversely impacts the patient’s choices for dental care,” the letter said. 

When it comes to expensing and cash accounting, the ADA supports full expensing of investments in equipment and property through the Small Business Growth Act, which would lift the deduction cap to $2 million with a phaseout at $3.5 million. The association also supports continued use of the cash method of accounting for small businesses.

“The cash method of accounting is a simpler, fairer system for dentists who often must wait a significant period of time before being reimbursed by insurance companies for the services they provide,” the Association said.

The ADA also encouraged lawmakers to include measures that would help relieve student loan debt, of which new dentists average more than $300,000. Through tax incentives and deductions related to student debt, the ADA said, dentists would be better positioned to explore numerous practice choices upon graduation.  

To learn more about how to help, visit the ADA's Action Alert on tax reform. 

For more information about the ADA’s advocacy efforts, visit ADA.org/Advocacy.