Congressman Shri Thanedar Introduces the "Tax Relief for Fired Workers Act”
Washington, DC - April 8th, 2025 - Today, Congressman Shri Thanedar (MI-13) announced the introduction of the "Tax Relief for Fired Workers Act” (H.R. 2655), a bill that will amend the tax code by permanently repealing federal income taxes on unemployment benefits. Joining Representative Thanedar as original co-sponsors of this bill are Representatives Janelle Bynum (OR-5), Valerie Foushee (NC-4), Hank Johnson (GA-4), and Eleanor Holmes Norton (DC-At Large).
"Almost all welfare programs are exempt from federal income taxation,” said Congressman Thanedar. “For over 40 years, unemployment benefits were treated the same way. However, Americans have had to pay federal income taxes on unemployment benefits since 1979. By introducing the Tax Relief for Fired Workers Act, I’m working to correct this injustice and provide much needed tax relief to Americans who have suddenly fallen on hard times. With Trump and Musk firing more and more hard-working federal employees every day, we must give this much-needed tax relief to the many Americans who have and will lose their jobs due to the failures of this administration.”
This legislation has supporters across the Democratic caucus, with original co-sponsor Congresswoman Valerie Foushee saying, “Federal workers across the country are fearing for their livelihoods as the Trump Administration continues to make alarming cuts to federal agencies without discretion, transparency, or accountability. North Carolina alone is home to over 82,000 federal employees, and we must support our dedicated civil servants who may lose their jobs due to this Administration’s reckless actions,” said Congresswoman Valerie Foushee (NC-04). “I’m proud to join Rep. Thanedar in introducing the Tax Relief for Fired Workers Act to provide crucial support to the hardworking Americans affected by Trump’s cuts by removing federal income taxes on unemployment benefits, and I look forward to working alongside my colleagues to pass this bill through the House and into law.”
Congressman Shri Thanedar proudly represents Michigan's 13th Congressional District, which includes Detroit, Downriver, and the Grosse Pointes. As a champion for working families, Shri is committed to advancing economic opportunities, education, healthcare access, and entrepreneurship for underserved communities. Drawing from his journey from poverty to success, he works tirelessly to uplift metro Detroit, ensuring every resident has the resources and support they need to thrive.
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