H.R.2671 - Tax Fairness for Workers Act (119th Congress)
Summary
H.R.2671, the Tax Fairness for Workers Act, aims to amend the Internal Revenue Code of 1986. The bill seeks to allow workers an above-the-line deduction for union dues and expenses. It also aims to allow a miscellaneous itemized deduction for unreimbursed employee business expenses.
The bill intends to provide tax relief to workers by reducing their taxable income. The bill was introduced in the House of Representatives on April 7, 2025, and referred to the Committee on Ways and Means.
The proposed changes would apply to taxable years beginning after December 31, 2024.
Expected Effects
If enacted, H.R.2671 would change how workers can deduct certain expenses on their federal income taxes. Union members would be able to deduct their dues directly from their gross income, reducing their overall tax burden.
Additionally, employees could deduct unreimbursed business expenses, which could further lower their taxable income. This could lead to increased take-home pay for affected workers.
The changes would likely impact federal tax revenue, potentially decreasing it due to increased deductions.
Potential Benefits
- Potentially lower tax liability for union members.
- May incentivize union membership due to tax benefits.
- Could reduce the financial burden on workers who incur unreimbursed business expenses.
- May simplify tax filing for some workers by allowing above-the-line deductions.
- Could stimulate the economy as workers have more disposable income.
Potential Disadvantages
- Potential decrease in federal tax revenue, which could impact government programs.
- Increased complexity in the tax code due to new deduction rules.
- May disproportionately benefit higher-income workers who itemize deductions.
- Possible administrative burden for the IRS to implement and monitor the new deductions.
- Could create a perception of unfairness if non-union workers do not receive similar tax benefits.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to provide economic benefits to workers. Congress has broad authority to tax and spend for the general welfare under Article I, Section 8.
The bill does not appear to infringe upon any specific constitutional rights or limitations. The power to levy taxes and create deductions falls within the enumerated powers of Congress.
However, the fairness and equity of the tax system are ongoing concerns, and the bill's impact on different groups of taxpayers should be considered in light of the principles of equal protection, although this is not explicitly addressed in the Constitution.
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).