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How it worksIntroduced
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Passed Congress
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What this bill does
AI plain-language summaryThis bill would stop the collection of federal income taxes on wages during government shutdowns caused by Congress not passing spending bills. During a shutdown, regular taxpayers would not owe federal income taxes and would not face penalties or interest on tax payments or returns. The bill also makes back pay tax-free for federal employees and contractors who didn't get paid during a shutdown and are covered by a 2019 law about fair treatment of government workers. The Treasury Department would need to create rules for employers to follow these requirements for all types of workers.
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