Who Knew Tax Reform Impacted Mental Health?

Nov 16, 2017

Congress is currently considering tax reform bills. The House could vote on its tax bill as early as today, Nov. 15, while the Senate is expected to vote the week after Thanksgiving.

While NAMI does not take a position on overall tax reform efforts, we do take positions on provisions in tax bills that would negatively impact people with mental illness and the efforts of NAMI State Organizations and NAMI Affiliates.

How Tax Reform Impacts People with Mental Illness

Tax reform should not hurt people with mental illness. Current proposals would do just that. Here’s how:

Repealing this deduction will harm people with serious mental illness who can least afford it—and may even lead to people going without treatment.

While neither tax bill touches Medicaid, it is estimated that the current proposals could add as much as $1.5 trillion to the deficit. To pay for the tax cuts and reduce the deficit, Congress may propose to cut Medicaid and other services soon.

How Tax Reform Impacts NAMI

Other tax reform provisions that are expected to affect charitable giving could impact NAMI State Organizations and NAMI Affiliates, as well. The most important proposed change is a substantial increase in the standard deduction on income taxes. If passed, this is expected to significantly reduce the number of people who itemize deductions, including charitable deductions. Many groups, including the nonpartisan Joint Committee on Taxation, suggest that this may dramatically reduce Americans’ charitable giving to nonprofits, such as NAMI organizations. 


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text “helpline” to 62640, or chat online. In a crisis, call or text 988 (24/7).