The following is from a press release from NC Congresswoman Virginia Foxx.
Foxx Co-sponsors Bill to Cut Taxes on Unemployment Benefits
Bill stops IRS from kicking jobless workers while they’re down
WASHINGTON, D.C. – Congresswoman Virginia Foxx (NC-05) has co-sponsored legislation that will suspend income taxes on unemployment benefits paid to jobless workers. The IRS currently considers unemployment benefits to be “income” and levies normal income taxes on jobless workers that receive benefits.
“Many North Carolina families are struggling to make ends meet as they face the loss of jobs and income at this especially difficult time and, believe it or not, the federal government taxes their unemployment benefits,” Foxx said. “By stopping the unfair taxation of unemployment benefits we can help jobless workers stay afloat and eventually get back to work.”
The Suspension of Federal Income Tax on Unemployment Benefits Act (H.R. 155) suspends taxes on unemployment benefits for two years in an effort to help laid off workers make it through the current recession. Stopping the taxation of unemployment benefits will help millions of American families weather the economic storm by providing about $117 in additional monthly income to the average beneficiary.
“Taxing the unemployed does nothing to spur economic recovery,” Foxx said. “Instead of allowing the IRS to kick jobless workers while they are down, this legislation offers a common sense solution to put more money in the pockets of struggling families.”
Foxx is also pushing to include the suspension of unemployment benefits in the stimulus package making its way through Congress.