To amend the Internal Revenue Code of 1986 to exclude from gross income certain compensation to clinical trial participants, and for other purposes.
Summary
H.R. 4184 aims to amend the Internal Revenue Code of 1986 by excluding compensation received by clinical trial participants from their gross income. This exclusion applies to payments for participation and reimbursements for related expenses. The bill also ensures that these payments are not considered when determining eligibility for federal or federally funded state and local programs.
Expected Effects
The bill's passage would reduce the tax burden on individuals participating in clinical trials, potentially incentivizing greater participation. It would also prevent these payments from negatively impacting eligibility for public assistance programs. This could improve access to healthcare and support medical research.
Potential Benefits
- Increased participation in clinical trials due to the elimination of tax burden on compensation.
- Improved access to healthcare for individuals who rely on clinical trial compensation.
- Reduced financial burden on low-income individuals participating in clinical trials.
- Simplification of tax filing for clinical trial participants.
- Encouragement of medical research and development.
Most Benefited Areas:
Potential Disadvantages
- Potential loss of tax revenue for the government, although likely minimal.
- Possible increased administrative burden for federal programs to disregard clinical trial payments during eligibility assessments.
- Risk of unintended consequences or loopholes that could be exploited.
- Complexity in defining and verifying 'reasonable and necessary expenses'.
- Limited direct impact on individuals not participating in clinical trials.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble), as it aims to promote public health and encourage medical research. Congress has the power to lay and collect taxes (Article I, Section 8), and by extension, the power to create exemptions from taxation. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).