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).

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 738 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                 S. 738

 To amend the Internal Revenue Code of 1986 to allow workers an above-
     the-line deduction for union dues and expenses and to allow a 
   miscellaneous itemized deduction for workers for all unreimbursed 
    expenses incurred in the trade or business of being an employee.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2023

   Mr. Casey (for himself, Mr. Schumer, Mrs. Murray, Mr. Brown, Mr. 
  Sanders, Ms. Baldwin, Mr. Bennet, Mr. Blumenthal, Ms. Cantwell, Mr. 
 Cardin, Ms. Cortez Masto, Ms. Duckworth, Mr. Durbin, Mrs. Feinstein, 
 Mr. Fetterman, Mrs. Gillibrand, Ms. Hassan, Mr. Heinrich, Ms. Hirono, 
    Mr. Kelly, Mr. King, Ms. Klobuchar, Mr. Lujan, Mr. Markey, Mr. 
 Menendez, Mr. Merkley, Mr. Murphy, Mr. Padilla, Mr. Reed, Ms. Rosen, 
Mr. Schatz, Mrs. Shaheen, Ms. Smith, Ms. Stabenow, Mr. Van Hollen, Mr. 
    Warnock, Ms. Warren, Mr. Welch, Mr. Whitehouse, and Mr. Wyden) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow workers an above-
     the-line deduction for union dues and expenses and to allow a 
   miscellaneous itemized deduction for workers for all unreimbursed 
    expenses incurred in the trade or business of being an employee.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Fairness for Workers Act''.

SEC. 2. ALLOWANCE OF DEDUCTION FOR CERTAIN EXPENSES OF THE TRADE OR 
              BUSINESS OF BEING AN EMPLOYEE.

    (a) Above-the-Line Deduction for Union Dues and Expenses.--Section 
62(a)(1) of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new sentence: ``The limitation under the 
preceding sentence shall not apply to deductions which are attributable 
to a trade or business consisting of the performance of services by the 
taxpayer as an employee if such deductions are for union dues and 
expenses.''
    (b) Allowance of Miscellaneous Itemized Deduction for Other 
Expenses of the Trade or Business of Being an Employee.--Section 67(g) 
of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``2025.--Notwithstanding subsection (a),'' 
        and inserting ``2025.--
            ``(1) In general.--Notwithstanding subsection (a), except 
        as provided in paragraph (2),''; and
            (2) by adding at the end the following:
            ``(2) Exception for expenses of the trade or business of 
        being an employee.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                miscellaneous itemized deductions for any taxable year 
                which are itemized deductions attributable to a trade 
                or business carried on by the taxpayer which consists 
                of the performance of services by the taxpayer as an 
                employee.
                    ``(B) Application of 2-percent test.--In applying 
                subsection (a) for any taxable year to which this 
                paragraph applies, only the itemized deductions 
                described in subparagraph (A) shall be taken into 
                account as miscellaneous itemized deductions.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.
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