ADA outlines tax priorities

Associations calls for renewal of tax policies, tax exemption of loan repayment programs

The American Dental Association is outlining its priorities on small business tax policy. In a Feb. 5 letter to the Ways and Means Committee, the Association provided input on policies it said would affect oral health, health care access and the broader health care system. 

“Oral health is an essential component of overall health, and addressing the challenges in this area will lead to significant improvements in the well-being of millions of Americans, as well as supporting the $478 billion annual economic impact of the dental sector. 

In its letter, the ADA urged Congress to renew tax policies that “are essential to supporting small business dental practices.” These include a 20% deduction for dental practices organized as pass-through entities, full expensing of investments, and a corporate tax rate of 21%. 

Failure to renew these policies would have a profound negative impact on oral health – especially for younger dentists and new practices, according to ADA President Brett Kessler, D.D.S., and Executive Director Raymond Cohlmia, D.D.S.

Drs. Kessler and Cohlmia also encouraged Congress to exempt loan repayment programs from taxable income, such as the Indian Health Service Loan Repayment and Scholarship Program and the Dental Faculty Loan Repayment Program. 

“These initiatives are vital for addressing workforce shortages in rural and underserved communities, ensuring a robust oral health infrastructure and expanding access to care,” reads the letter. 

The letter goes on to urge Congress to support the Oral Health Products Inclusion Act, which would recognize essential oral care products as “qualified medical expenses under Flexible Spending Accounts and Health Savings Accounts; protect health organizations and maintain the charitable deduction for such entities; protect the student loan interest deduction of up to $2,500 per tax year; and protect credit unions’ tax-exemption status. 

“Thank you for the opportunity to share the tax reform priorities of the dental profession. These policies are critical to ensuring that dental practices continue to thrive as integral parts of both the economy and the health system,” the letter concludes. “The ADA remains committed to advancing oral health and supporting policies that improve access to care and strengthen the nation’s oral health infrastructure.”