H.R.228 - To amend the Internal Revenue Code of 1986 to increase and adjust for inflation the above-the-line deduction for teachers. (119th Congress)
Summary
H.R.228 proposes to amend the Internal Revenue Code of 1986, specifically targeting the above-the-line deduction for teachers' expenses. The bill aims to increase the deductible amount from $250 to $1000 and adjust this amount for inflation. This adjustment would apply to taxable years beginning after December 31, 2024.
Expected Effects
If enacted, H.R.228 would provide teachers with a larger tax deduction for eligible expenses. This could reduce their tax burden and potentially incentivize them to invest more in classroom resources. The change would be effective for the 2025 tax year and beyond.
Potential Benefits
- Increased Financial Relief for Teachers: Teachers can deduct more of their out-of-pocket classroom expenses, easing their financial burden.
- Potential for Improved Classroom Resources: With reduced financial strain, teachers may be more willing to invest in better resources for their students.
- Inflation Adjustment: The deduction will be adjusted for inflation, maintaining its value over time.
- Simplified Tax Filing: An above-the-line deduction reduces adjusted gross income, potentially simplifying tax calculations.
- Attract and Retain Teachers: This benefit could make the teaching profession more attractive and help retain educators.
Most Benefited Areas:
Potential Disadvantages
- Potential for Increased Deficit: Increased tax deductions could lead to a decrease in government revenue, potentially increasing the budget deficit.
- Complexity in Implementation: Adjusting for inflation adds complexity to the tax code, requiring clear guidelines and calculations.
- Limited Scope: The benefit is limited to teachers and may not address broader issues in education funding.
- Potential for Abuse: There may be challenges in verifying eligible expenses, potentially leading to fraudulent claims.
- Disproportionate Benefit: Teachers in higher-income brackets may benefit more from the deduction than those in lower-income brackets.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble), as it aims to support teachers and, by extension, education. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under the power to collect taxes and provide for the general welfare.
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).