H.R.1208 - No Tax Breaks for Radical Corporate Activism Act (119th Congress)
Summary
H.R. 1208, the "No Tax Breaks for Radical Corporate Activism Act," seeks to amend the Internal Revenue Code of 1986 by disallowing trade or business expense deductions for employer reimbursements of employee costs related to child gender transition procedures or travel to obtain an abortion. The bill defines key terms like "gender transition procedure," "minor child," and related medical interventions. It specifies exceptions for medically verifiable disorders of sex development and treatments for complications arising from gender transition procedures.
Expected Effects
If enacted, this bill would increase the cost to employers of providing certain healthcare benefits related to abortion and gender transition for minor children. This could lead to some employers reducing or eliminating these benefits. The bill aims to discourage corporate activism related to these specific healthcare services.
Potential Benefits
- Potentially reduces taxpayer subsidization of controversial medical procedures.
- May align tax policy with certain moral or religious viewpoints.
- Could lead to cost savings for the federal government due to reduced deductions.
- May incentivize employers to focus on other types of employee benefits.
- Could be seen as reinforcing parental rights and control over children's healthcare decisions.
Most Benefited Areas:
Potential Disadvantages
- May limit access to healthcare for employees and their children, particularly in states with restrictive abortion laws or limited gender-affirming care.
- Could be viewed as discriminatory against employees seeking abortion services or gender-affirming care for their children.
- May create administrative burdens for employers to track and differentiate between allowable and disallowed deductions.
- Could face legal challenges based on equal protection or privacy grounds.
- May harm employer-employee relations and negatively impact corporate recruitment and retention efforts.
Constitutional Alignment
The bill's constitutional alignment is debatable. Opponents may argue it infringes upon individual liberties and equal protection under the law, potentially violating the 5th and 14th Amendments. Supporters may argue it falls within Congress's power to tax and regulate commerce, as outlined in Article I, Section 8. The lack of explicit constitutional guidance on abortion and gender-affirming care leaves room for interpretation.
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).