CONGRESS FOR VOTERS

DemocratBill · H.R. 2655· House(119-HR-2655)

To amend the Internal Revenue Code of 1986 to sunset the Federal income tax on unemployment compensation.

Rep. Thanedar
Age: 71 years
Michigan
Introduced
4/3/2025
Last activity
4/3/2025 — Referred to the House Committee on Ways and Means.
Sponsored by
Shri Thanedar
Cosponsors
Democrat - 4Republican - 0
Taxation
  1. Introduced
  2. In Committee

What this bill would do

This bill proposes an amendment to the Internal Revenue Code of 1986. The primary goal is to sunset the Federal income tax on unemployment compensation. It seeks to strike the current subsection regarding the inclusion of these payments in gross income. This change would prevent unemployment compensation from being taxed for specific taxable years. The change would apply to amounts received after December 31, 2024.

Yes· 3 of 6

  • Would households on low incomes be better off under this?+7

    Removing the tax on unemployment benefits provides significant relief to low-income households.

  • Is this likely to lift people out of poverty?+5

    Increasing net income for those on unemployment helps mitigate poverty.

  • Does this cut taxes for middle-income families?+5

    By removing the tax on unemployment benefits, more disposable income remains with middle and low-income households.

The opposite

  • Does this reduce what the federal government owes?-2

    Sunsetting this tax will reduce federal revenue, potentially increasing the deficit.

  • Does this make the government pay for what it commits to?-2

    Reducing revenue streams may be viewed as a decrease in fiscal responsibility.