Coronavirus Bill Repeals Obamacare Tax Penalty for Over-the-Counter Medicines

Pre-tax accounts will soon be available for use on cold, flu, allergy and menstrual medicines….

Coronavirus Bill Repeals Obamacare Tax Penalty for Over-the-Counter Medicines

Allergy medicine / PHOTO: Ben Sellers, Liberty Headline

(Joshua Paladino, Liberty Headlines) Congress officially passed the Coronavirus Aid, Recovery and Economic Security Act on Friday with a provision that will benefit Americans with Health Savings Accounts and Flexible Spending Accounts.

The act repeals Obamacare’s Medicine Cabinet Tax, a law that prevents Americans from buying over-the-counter medicines with their HSAs and FSAs, Americans for Tax Reform reported.

Once implemented, Americans will be able to use their pre-tax insurance dollars to buy “cold and flu drugs, allergy medication, children’s fever relievers, and menstrual cramp relief medication.”

The Medicine Cabinet Tax fell predominately on middle-class Americans.

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Former President Barack Obama and Vice President Joe Biden advocated for the legislation, despite their promise not to raise taxes on Americans earning less than $250,000 a year.

The Medicine Cabinet Tax raised $8.5 billion in taxes over 10 years.