| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 1286 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to allow workers an above- |
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| 6 | 6 | | the-line deduction for union dues and expenses and to allow a miscella- |
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| 7 | 7 | | neous itemized deduction for workers for all unreimbursed expenses in- |
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| 8 | 8 | | curred in the trade or business of being an employee. |
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| 9 | 9 | | IN THE SENATE OF THE UNITED STATES |
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| 10 | 10 | | APRIL3, 2025 |
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| 11 | 11 | | Ms. S |
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| 12 | 12 | | MITH(for herself, Mr. LUJA´N, Mr. MERKLEY, Mr. MURPHY, Mr. VAN |
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| 13 | 13 | | H |
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| 14 | 14 | | OLLEN, Mr. WARNOCK, Ms. HIRONO, Mr. DURBIN, Mr. BLUMENTHAL, |
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| 15 | 15 | | Ms. K |
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| 16 | 16 | | LOBUCHAR, Mrs. SHAHEEN, Mr. FETTERMAN, Mr. WYDEN, Mr. |
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| 17 | 17 | | R |
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| 18 | 18 | | EED, Ms. ROSEN, Ms. BALDWIN, Mr. BENNET, Ms. DUCKWORTH, Mr. |
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| 19 | 19 | | G |
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| 20 | 20 | | ALLEGO, Mrs. GILLIBRAND, Mr. SCHATZ, Mr. WELCH, Ms. SLOTKIN, |
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| 21 | 21 | | Ms. W |
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| 22 | 22 | | ARREN, Mr. SANDERS, Mr. KING, Mr. KELLY, Mr. MARKEY, Mr. |
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| 23 | 23 | | W |
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| 24 | 24 | | HITEHOUSE, Mr. HEINRICH, Ms. CANTWELL, Mr. PADILLA, Mrs. MUR- |
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| 25 | 25 | | RAY, and Mr. BOOKER) introduced the following bill; which was read |
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| 26 | 26 | | twice and referred to the Committee on Finance |
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| 27 | 27 | | A BILL |
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| 28 | 28 | | To amend the Internal Revenue Code of 1986 to allow work- |
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| 29 | 29 | | ers an above-the-line deduction for union dues and ex- |
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| 30 | 30 | | penses and to allow a miscellaneous itemized deduction |
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| 31 | 31 | | for workers for all unreimbursed expenses incurred in |
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| 32 | 32 | | the trade or business of being an employee. |
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| 33 | 33 | | Be it enacted by the Senate and House of Representa-1 |
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| 34 | 34 | | tives of the United States of America in Congress assembled, 2 |
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| 35 | 35 | | VerDate Sep 11 2014 10:14 Apr 14, 2025 Jkt 000000 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1286.IS S1286 |
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| 36 | 36 | | mprince on LAP1J3WLY3PROD with $$_JOB 2 |
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| 37 | 37 | | •S 1286 IS |
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| 38 | 38 | | SECTION 1. SHORT TITLE. 1 |
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| 39 | 39 | | This Act may be cited as the ‘‘Tax Fairness for 2 |
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| 40 | 40 | | Workers Act’’. 3 |
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| 41 | 41 | | SEC. 2. ALLOWANCE OF DEDUCTION FOR CERTAIN EX-4 |
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| 42 | 42 | | PENSES OF THE TRADE OR BUSINESS OF 5 |
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| 43 | 43 | | BEING AN EMPLOYEE. 6 |
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| 44 | 44 | | (a) A |
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| 45 | 45 | | BOVE-THE-LINEDEDUCTION FORUNIONDUES 7 |
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| 46 | 46 | | ANDEXPENSES.—Section 62(a)(1) of the Internal Rev-8 |
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| 47 | 47 | | enue Code of 1986 is amended by adding at the end the 9 |
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| 48 | 48 | | following new sentence: ‘‘The limitation under the pre-10 |
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| 49 | 49 | | ceding sentence shall not apply to deductions which are 11 |
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| 50 | 50 | | attributable to a trade or business consisting of the per-12 |
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| 51 | 51 | | formance of services by the taxpayer as an employee if 13 |
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| 52 | 52 | | such deductions are for union dues and expenses.’’. 14 |
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| 53 | 53 | | (b) A |
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| 54 | 54 | | LLOWANCE OFMISCELLANEOUSITEMIZEDDE-15 |
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| 55 | 55 | | DUCTION FOR OTHEREXPENSES OF THE TRADE OR 16 |
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| 56 | 56 | | B |
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| 57 | 57 | | USINESS OFBEING ANEMPLOYEE.—Section 67(g) of 17 |
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| 58 | 58 | | the Internal Revenue Code of 1986 is amended— 18 |
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| 59 | 59 | | (1) by striking ‘‘2025.—Notwithstanding sub-19 |
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| 60 | 60 | | section (a),’’ and inserting ‘‘2025.— 20 |
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| 61 | 61 | | ‘‘(1) I |
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| 62 | 62 | | N GENERAL.—Notwithstanding subsection 21 |
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| 63 | 63 | | (a), except as provided in paragraph (2),’’; and 22 |
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| 64 | 64 | | (2) by adding at the end the following: 23 |
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| 65 | 65 | | ‘‘(2) E |
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| 66 | 66 | | XCEPTION FOR EXPENSES OF THE 24 |
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| 67 | 67 | | TRADE OR BUSINESS OF BEING AN EMPLOYEE .— 25 |
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| 68 | 68 | | VerDate Sep 11 2014 10:14 Apr 14, 2025 Jkt 000000 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1286.IS S1286 |
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| 69 | 69 | | mprince on LAP1J3WLY3PROD with $$_JOB 3 |
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| 70 | 70 | | •S 1286 IS |
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| 71 | 71 | | ‘‘(A) IN GENERAL.—Paragraph (1) shall 1 |
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| 72 | 72 | | not apply to miscellaneous itemized deductions 2 |
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| 73 | 73 | | for any taxable year which are itemized deduc-3 |
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| 74 | 74 | | tions attributable to a trade or business carried 4 |
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| 75 | 75 | | on by the taxpayer which consists of the per-5 |
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| 76 | 76 | | formance of services by the taxpayer as an em-6 |
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| 77 | 77 | | ployee. 7 |
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| 78 | 78 | | ‘‘(B) A |
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| 79 | 79 | | PPLICATION OF 2-PERCENT TEST.— 8 |
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| 80 | 80 | | In applying subsection (a) for any taxable year 9 |
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| 81 | 81 | | to which this paragraph applies, only the 10 |
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| 82 | 82 | | itemized deductions described in subparagraph 11 |
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| 83 | 83 | | (A) shall be taken into account as miscellaneous 12 |
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| 84 | 84 | | itemized deductions.’’. 13 |
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| 85 | 85 | | (c) E |
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| 86 | 86 | | FFECTIVEDATE.—The amendments made by 14 |
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| 87 | 87 | | this section shall apply to taxable years beginning after 15 |
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| 88 | 88 | | December 31, 2024. 16 |
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| 89 | 89 | | Æ |
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| 91 | 91 | | mprince on LAP1J3WLY3PROD with $$_JOB |
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