Us Congress House Bill HB8194

Us Congress 2023-2024 Regular Session

• Introduced: 5/1/24
• Refer: 5/1/24

Caption

Second Job Tax Relief Act of 2024

Impact

If passed, HB 8194 would significantly impact state tax laws by altering how secondary income is treated for tax purposes. By excluding this income from taxable earnings, the bill could encourage more individuals to pursue additional work without fear of additional tax liabilities. This may lead to increased disposable income for many families, potentially stimulating local economies as residents have more spending power. However, the bill includes a phase-out provision for higher-income earners, where those with modified adjusted gross incomes exceeding $100,000 (or $150,000 for joint filers) would see their tax relief gradually reduced, making the benefit targeted primarily toward middle and lower-income taxpayers.

Summary

House Bill 8194, known as the 'Second Job Tax Relief Act of 2024', seeks to amend the Internal Revenue Code of 1986 by providing tax relief to certain taxpayers. The bill proposes that compensation received from secondary employment should be excluded from gross income for specific individuals. This initiative aims to alleviate the financial burden on those who undertake additional jobs, particularly in times of economic distress when many individuals turn to secondary employment to boost their earnings. The bill not only targets income tax but also payroll taxes, reflecting a broader approach to providing economic support.

Contention

While proponents argue that this measure would provide much-needed relief for those balancing multiple jobs, critics express concerns over the long-term implications for tax revenue and potential disparities in benefits. Some worry that this approach may inadvertently favor workers who are already established in the workforce, leaving underprivileged demographics without adequate support. Additionally, there is apprehension regarding the sustainability of funding for programs funded through payroll taxes as the bill seeks to exclude a portion of these from the tax base. The discussions surrounding the bill suggest a fundamental debate on the balance between tax relief for working families and ensuring adequate funding for public services reliant on these tax revenues.