Congressman LaMalfa urging bipartisan tax relief for unemployment insurance recipients

Northern California Congressman, Doug LaMalfa, sent a letter to House and Senate leaders urging bipartisan action, to ease the burden of taxes on those who received unemployment benefits.

Posted: Feb 18, 2021 2:41 PM

CHICO, Calif. – Northern California Congressman, Doug LaMalfa, sent a letter to House and Senate leaders urging bipartisan action, to ease the burden of taxes on those who received unemployment benefits.

Congressman LaMalfa said that many of the nearly 44 million Americans filing for unemployment last year were unaware those benefits are considered taxable income.

“No American who lost his or her job because of COVID should suffer the additional unexpected burden of having their unemployment benefits taxed," said LaMalfa in a news release. "I’ve offered two commonsense solutions to this problem that will bolster bipartisan Congressional intent to aid those suffering after losing their employment, as well as strengthened measures to combat the fraud being perpetrated on far too many Americans. I call on Congress to incorporate a fix for these issues in any additional COVID relief legislation being considered, and I look forward to continuing to work with my Republican and Democrat colleagues towards a solution.”

LaMalfa proposes that the IRS could waive failure to pay penalties and congress could create a refundable tax credit, equal to the value of taxes owed on unemployment benefits collected in 2020.

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