To amend the Internal Revenue Code of 1986 to sunset the Federal income tax on unemployment compensation.

# HR 2655 Summary **What the Bill Would Do** This bill would eliminate the federal income tax on unemployment benefits. Currently, when someone receives unemployment compensation, that money is counted as taxable income, meaning recipients may owe federal income taxes on these benefits. This bill would change that by creating a "sunset" provision—meaning the tax would automatically expire after a set period. This would allow unemployed workers to keep their full unemployment benefits without owing federal taxes on them. **Who It Affects and Key Details** The bill primarily affects people receiving unemployment benefits, allowing them to keep more of their payments.

It would also affect federal tax revenue, as the government would collect less income tax. The bill is currently in committee, meaning it's in the early stages of the legislative process and hasn't yet been debated or voted on by the full House. Representative Shri Thanedar (D-Michigan) introduced the legislation. The bill itself contains minimal additional details in the available information, though the "sunset" mechanism suggests the tax exemption would be temporary rather than permanent.