Tax Fairness for Workers Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1286 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1286

 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.


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                   IN THE SENATE OF THE UNITED STATES

                             April 3, 2025

  Ms. Smith (for herself, Mr. Lujan, Mr. Merkley, Mr. Murphy, Mr. Van 
   Hollen, Mr. Warnock, Ms. Hirono, Mr. Durbin, Mr. Blumenthal, Ms. 
Klobuchar, Mrs. Shaheen, Mr. Fetterman, Mr. Wyden, Mr. Reed, Ms. Rosen, 
 Ms. Baldwin, Mr. Bennet, Ms. Duckworth, Mr. Gallego, Mrs. Gillibrand, 
Mr. Schatz, Mr. Welch, Ms. Slotkin, Ms. Warren, Mr. Sanders, Mr. King, 
Mr. Kelly, Mr. Markey, Mr. Whitehouse, Mr. Heinrich, Ms. Cantwell, Mr. 
 Padilla, Mrs. Murray, and Mr. Booker) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

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                                 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, 2024.
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