Tax Fairness for Workers Act

Bill Number: H.R. 2671
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Taxation
Status: Introduced
Latest Action: 2025-04-07: Referred to the House Committee on Ways and Means.
Last Updated: 2026-06-25T08:07:56Z

AI-Generated Summary

Tax Fairness for Workers Act (H.R. 2671)

Purpose

This bill aims to provide tax relief to workers by allowing deductions for certain job-related expenses that are currently limited or unavailable under existing tax rules. It seeks to make the tax code fairer for employees by treating their work expenses more like those of self-employed individuals.

Key Provisions

Above-the-Line Deduction for Union Dues and Expenses: Adds a provision to Section 62(a)(1) of the Internal Revenue Code (IRC) allowing workers to deduct union dues and related expenses directly from their gross income (an "above-the-line" deduction). This bypasses the need to itemize deductions and is not subject to the usual limitations on employee business expense deductions.
Restoration of Miscellaneous Itemized Deductions for Other Employee Expenses: Amends Section 67(g) of the IRC to reinstate miscellaneous itemized deductions for unreimbursed expenses incurred in the trade or business of being an employee (e.g., tools, uniforms, or travel costs not covered by the employer). These deductions would still be subject to a 2% floor (meaning only the amount exceeding 2% of adjusted gross income can be deducted), but the suspension of such deductions (in place since 2018) would end for these specific expenses.
Effective Date: The changes apply to taxable years beginning after December 31, 2024.

Significant Changes to Existing Law

Prior to 2018, under the Tax Cuts and Jobs Act (TCJA), miscellaneous itemized deductions for employee business expenses were allowed but subject to the 2% adjusted gross income (AGI) floor. The TCJA suspended these deductions entirely through 2025. This bill partially reverses that suspension by allowing them again for employee-related expenses starting in 2026.
Union dues were previously deductible as a miscellaneous itemized deduction (also suspended), but this bill elevates them to an above-the-line deduction, making them more accessible even for taxpayers who take the standard deduction (which most people do).
No changes to the overall suspension of other miscellaneous itemized deductions (e.g., for tax preparation fees); the bill targets only employee business expenses.

Potential Impacts

On Citizens: Workers, especially union members and those with high unreimbursed job costs (e.g., teachers buying classroom supplies or salespeople covering travel), could see reduced taxable income and lower tax bills. This might encourage union participation and help lower- and middle-income employees offset work costs.
On Government Agencies: The Internal Revenue Service (IRS) would need to update forms, guidance, and auditing processes to handle these reinstated deductions, potentially increasing administrative workload. The federal government could face reduced tax revenue (estimates not provided in the bill), affecting budget planning.
On International Relations: No direct impact, as this is a domestic tax policy focused on U.S. workers.

Main Stakeholders Affected

Employees and Union Members: Primary beneficiaries, gaining easier access to deductions for dues, fees, and job expenses.
Taxpayers in General: Non-itemizers (about 90% of filers) benefit from the above-the-line union deduction; itemizers gain from restored employee expense deductions.
Employers and Unions: Indirectly affected, as deductions could make union membership more attractive and reduce employee financial burdens from work costs.
U.S. Treasury and IRS: Responsible for implementing and enforcing the changes, with potential revenue implications.

Notable Legal, Constitutional, or Political Implications

Legal: Aligns with IRC principles treating employee expenses as business deductions but restores pre-TCJA flexibility without broader tax code overhaul. Could face challenges if seen as favoring certain workers (e.g., unionized ones), but it appears compliant with equal protection under the Constitution as it applies broadly to employees.
Constitutional: No apparent issues; tax deductions are a congressional power under Article I, and this does not infringe on free speech or association rights (e.g., it supports union activities without mandating them).
Political: Introduced by a large bipartisan group (though predominantly Democrats), it reflects ongoing debates over TCJA expirations in 2025. Passage could signal support for worker protections amid rising labor costs, but it might spark revenue concerns in a divided Congress, potentially influencing future tax reform negotiations.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Boyle, Brendan F. [D-PA-2]

Cosponsors (175)

Rep. Norcross, Donald [D-NJ-1], Rep. Ramirez, Delia C. [D-IL-3], Rep. Goldman, Daniel S. [D-NY-10], Rep. Latimer, George [D-NY-16], Rep. Green, Al [D-TX-9], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Wasserman Schultz, Debbie [D-FL-25], Rep. Moulton, Seth [D-MA-6], Rep. Brownley, Julia [D-CA-26], Rep. Pettersen, Brittany [D-CO-7], Rep. Bishop, Sanford D. [D-GA-2], Rep. McGarvey, Morgan [D-KY-3], Rep. Peters, Scott H. [D-CA-50], Rep. McBath, Lucy [D-GA-6], Rep. Mullin, Kevin [D-CA-15], Rep. Kelly, Robin L. [D-IL-2], Rep. Sherrill, Mikie [D-NJ-11], Rep. Davis, Donald G. [D-NC-1], Rep. McIver, LaMonica [D-NJ-10], Rep. Cleaver, Emanuel [D-MO-5], Rep. Dean, Madeleine [D-PA-4], Rep. Sánchez, Linda T. [D-CA-38], Rep. Larsen, Rick [D-WA-2], Rep. Sherman, Brad [D-CA-32], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Garcia, Robert [D-CA-42], Rep. Khanna, Ro [D-CA-17], Rep. Keating, William R. [D-MA-9], Rep. Casar, Greg [D-TX-35], Rep. Jayapal, Pramila [D-WA-7], Rep. Tlaib, Rashida [D-MI-12], Rep. Olszewski, Johnny [D-MD-2], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Titus, Dina [D-NV-1], Rep. McCollum, Betty [D-MN-4], Rep. Carter, Troy A. [D-LA-2], Rep. Castro, Joaquin [D-TX-20], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Morrison, Kelly [D-MN-3], Rep. Davis, Danny K. [D-IL-7], Rep. Mrvan, Frank J. [D-IN-1], Rep. Hoyle, Val T. [D-OR-4], Rep. Subramanyam, Suhas [D-VA-10], Rep. Horsford, Steven [D-NV-4], Rep. Trahan, Lori [D-MA-3], Rep. McBride, Sarah [D-DE-At Large], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Neguse, Joe [D-CO-2], Rep. Waters, Maxine [D-CA-43] and 125 more