Tax Fairness for Workers Act

Tax Fairness for Workers Act

This bill allows an above-the-line tax deduction for union dues and expenses. (An above-the-line deduction is subtracted from gross income and is available whether or not a taxpayer itemizes other deductions.)

The bill also reinstates the miscellaneous itemized tax deduction for unreimbursed expenses attributable to the performance of services as an employee (Under current law, all miscellaneous itemized deductions are suspended through 2025).

Bill 117 HR 2549, also known as the Tax Fairness for Workers Act, aims to address issues related to tax fairness for workers in the United States. The bill was introduced in the House of Representatives and is currently under consideration.

The main purpose of the Tax Fairness for Workers Act is to ensure that all workers are treated fairly when it comes to their tax obligations. The bill seeks to close loopholes and prevent tax evasion by ensuring that all workers, regardless of their employment status, are classified correctly and pay the appropriate amount of taxes.

One key provision of the bill is the establishment of clear guidelines for determining whether a worker should be classified as an employee or an independent contractor. This is important because misclassification can lead to workers not receiving the benefits and protections they are entitled to, as well as potentially avoiding paying taxes. Additionally, the Tax Fairness for Workers Act includes measures to crack down on employers who misclassify their workers in order to avoid paying payroll taxes. This includes increasing penalties for employers who are found to have misclassified their workers and providing resources for enforcement agencies to investigate and address cases of misclassification. Overall, the Tax Fairness for Workers Act aims to promote fairness and accountability in the tax system by ensuring that all workers are classified correctly and pay their fair share of taxes. The bill is currently being debated in Congress, and its ultimate fate will depend on the support it receives from lawmakers.