To suspend Federal individual income taxes during a lapse in appropriations, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
Suspends ordinary federal wage income tax liability, penalties, and interest during a partial or full government shutdown, and exempts backpay for covered furloughed federal employees and contractors from federal income tax.
Who Benefits and How
Wage earners, furloughed federal employees, and covered contractors could owe less federal income tax during a shutdown and on certain backpay.
Who Bears the Burden and How
The Treasury and employers would need to administer shutdown-specific tax guidance, and the federal government would lose individual income tax revenue during covered shutdown periods and on exempt backpay.
Key Provisions
- Defines a partial or full government shutdown as a lapse in federal appropriations causing a shutdown.
- Suspends ordinary federal income tax liability on wages during the shutdown period.
- Prevents penalty and interest accrual for federal individual income tax payments or returns during the covered period.
- Exempts backpay for covered furloughed federal employees and contractors working without pay from federal income taxes.
- Directs Treasury to issue employer compliance guidelines for tipped, hourly, salaried, and other covered employees.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Suspends ordinary federal wage income tax liability, penalties, and interest during a partial or full government shutdown, and exempts backpay for covered furloughed federal employees and contractors from federal income tax.
Key Policy Areas
Tax, Labor, Government Operations
Primary Purpose
Suspends ordinary federal wage income tax liability, penalties, and interest during a partial or full government shutdown, and exempts backpay for covered furloughed federal employees and contractors from federal income tax.
Policy Domains
Main Provisions
Identified Gains
Contextual inference, no direct clause citation- Citizens subject to ordinary federal wage income taxes during a shutdown
- Furloughed federal employees and covered contractors receiving backpay
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal treasury and tax administrators losing and administering shutdown-period revenue
- Employers implementing Treasury guidance for covered workers
Contextual inference, no direct clause citation
Legislative Progress
IntroducedMr. Bresnahan introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Wage earners subject to ordinary federal income taxes during a government shutdown
Furloughed federal employees and covered contractors receiving backpay after a shutdown
Federal treasury collecting individual income tax revenue during shutdown periods
Treasury and employers implementing shutdown-specific tax guidance
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "treasury_department"
- → Department of the Treasury
Key Definitions
Terms defined in this bill
Any period during which a lapse in federal appropriations results in a partial or full government shutdown.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology