59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–310 

EDUCATOR TAX RELIEF ACT OF 2015 

OCTOBER 23, 2015.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. RYAN of Wisconsin, from the Committee on Ways and Means, 

submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H.R. 2940] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Ways and Means, to whom was referred the 

bill (H.R. 2940) to amend the Internal Revenue Code of 1986 to improve and make permanent the above-the-line deduction for certain 

expenses of elementary and secondary school teachers, having considered the same, report favorably thereon with an amendment and 

recommend that the bill as amended do pass. 

CONTENTS 

Page 

I. SUMMARY AND BACKGROUND ............................................................... 2 

A. Purpose and Summary ..................................................................... 2 

B. Background and Need for Legislation ............................................. 2 

C. Legislative History ............................................................................ 3 

II. EXPLANATION OF THE BILL ................................................................... 3 

A. Above-the-Line Deduction for Certain Expenses of Elementary 

and Secondary School Teachers Modified and Made Permanent .................................................................................................. 3 

III. VOTES OF THE COMMITTEE .................................................................... 5 

IV. BUDGET EFFECTS OF THE BILL ............................................................ 5 

A. Committee Estimate of Budgetary Effects ...................................... 5 

B. Statement Regarding New Budget Authority and Tax Expenditures Budget Authority .................................................................. 6 

C. Cost Estimate Prepared by the Congressional Budget Office ....... 6 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF 

THE HOUSE .............................................................................................. 7 

A. Committee Oversight Findings and Recommendations ................. 7 


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B. Statement of General Performance Goals and Objectives ............. 7 

C. Information Relating to Unfunded Mandates ................................ 7 

D. Applicability of House Rule XXI 5(b) .............................................. 7 

E. Tax Complexity Analysis .................................................................. 8 

F. Congressional Earmarks, Limited Tax Benefits, and Limited 

Tariff Benefits ................................................................................. 8 

G. Duplication of Federal Programs ..................................................... 8 

H. Disclosure of Directed Rule Makings .............................................. 8 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 8 

A. Text of Existing Law Amended or Repealed by the Bill, as 

Reported .......................................................................................... 8 

B. Changes in Existing Law Proposed by the Bill, as Reported ........ 13 

VII. DISSENTING VIEWS ................................................................................... 20 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Educator Tax Relief Act of 2015’’. 

SEC. 2. DEDUCTION FOR CERTAIN EXPENSES OF SCHOOL TEACHERS. 

(a) DEDUCTION MADE PERMANENT.—Section 62(a)(2)(D) of the Internal Revenue 

Code of 1986 is amended by striking ‘‘In the case of taxable years beginning during 

2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, or 2014, 

the deductions’’ and inserting ‘‘The deductions’’. 

(b) INFLATION ADJUSTMENT.—Section 62(d) of such Code is amended by adding at 

the end the following new paragraph: 

‘‘(3) INFLATION ADJUSTMENT.—In the case of any taxable year beginning after 

2014, the $250 amount in subsection (a)(2)(D) shall be increased by an amount 

equal to— 

‘‘(A) such dollar amount, multiplied by 

‘‘(B) the cost-of-living adjustment determined under section 1(f)(3) for the 

calendar year in which the taxable year begins, determined by substituting 

‘calendar year 2013’ for ‘calendar year 1992’ in subparagraph (B) thereof. 

Any increase determined under the preceding sentence shall be rounded to the 

nearest multiple of $50.’’. 

(c) PROFESSIONAL DEVELOPMENT EXPENSES.—Section 62(a)(2)(D) of such Code is 

amended— 

(1) by striking ‘‘educator in connection’’ and all that follows and inserting ‘‘educator—’’, and 

(2) by inserting at the end the following: 

‘‘(i) by reason of the participation of the educator in professional development courses related to the curriculum in which the educator provides instruction or to the students for which the educator provides instruction, and 

‘‘(ii) in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other 

equipment, and supplementary materials used by the eligible educator 

in the classroom.’’. 

(d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2014. 

I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

H.R. 2940, as reported by the Committee on Ways and Means, 

provides a permanent deduction for eligible educator expenses of elementary and secondary school teachers. A temporary deduction for 

eligible educator expenses of elementary and secondary school 

teachers expired for tax years beginning after December 31, 2014. 

B. BACKGROUND AND NEED FOR LEGISLATION

While the Committee continues actively to pursue comprehensive 

tax reform as a critical means of promoting economic growth and 


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job creation, the Committee also believes that it is important to 

provide individuals with permanent and immediate tax relief and 

certainty concerning tax provisions like the deduction for eligible 

educator expenses. The deduction for eligible educator expenses 

has been a temporary provision of the tax code since 2002, and has 

now been extended for more than an entire ten-year budget window. In addition, the deduction does not cover expenses relating to 

professional development, and it is not indexed for inflation. Instead of repeatedly extending this provision on a temporary basis, 

the Committee believes the deduction for educator expenses should 

be made permanent, expanded to cover professional development 

expenses, and indexed for inflation to provide taxpayers muchneeded certainty in the tax code while Congress works to enact 

comprehensive reform. 

C. LEGISLATIVE HISTORY

Background 

H.R. 2940 was introduced on June 25, 2015, and was referred to 

the Committee on Ways and Means. 

Committee action 

The Committee on Ways and Means marked up H.R. 2940, the 

‘‘Educator Tax Relief Act of 2015,’’ on September 17, 2015, and ordered the bill, as amended, favorably reported (with a quorum 

being present). 

Committee hearings 

The need for permanent rules regarding the deduction for certain 

educator expenses was discussed at two hearings during the 112th 

and 113th Congresses: 

• Select Revenue Measures Subcommittee Hearing on Certain Expiring Tax Provisions (April 26, 2012); and 

• Full Committee Hearing on the Benefits of Permanent Tax 

Policy for America’s Job Creators (April 8, 2014). 

II. EXPLANATION OF THE BILL 

A. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS MODIFIED AND

MADE PERMANENT

PRESENT LAW

In general, ordinary and necessary business expenses are deductible. However, unreimbursed employee business expenses generally 

are deductible only as an itemized deduction and only to the extent 

that the individual’s total miscellaneous deductions (including employee business expenses) exceed two percent of adjusted gross income. An individual’s otherwise allowable itemized deductions may 

be further limited by the overall limitation on itemized deductions, 

which reduces itemized deductions for taxpayers with adjusted 

gross income in excess of a threshold amount. In addition, miscellaneous itemized deductions are not allowable under the alternative 

minimum tax. 


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1Sec. 62(a)(2)(D). Except where otherwise provided, all section references are to the Internal 

Revenue Code of 1986, as amended (the ‘‘Code’’). 

Certain expenses of eligible educators are allowed as an abovethe-line deduction. Specifically, for taxable years beginning prior to 

January 1, 2015, an above-the-line deduction is allowed for up to 

$250 annually of expenses paid or incurred by an eligible educator 

for books, supplies (other than nonathletic supplies for courses of 

instruction in health or physical education), computer equipment 

(including related software and services) and other equipment, and 

supplementary materials used by the eligible educator in the classroom.1 To be eligible for this deduction, the expenses must be otherwise deductible under section 162 as a trade or business expense. 

A deduction is allowed only to the extent the amount of expenses 

exceeds the amount excludable from income under section 135 (relating to education savings bonds), section 529(c)(1) (relating to 

qualified tuition programs), and section 530(d)(2) (relating to 

Coverdell education savings accounts). 

An eligible educator is a kindergarten through grade twelve 

teacher, instructor, counselor, principal, or aide in a school for at 

least 900 hours during a school year. A school means any school 

that provides elementary education or secondary education (kindergarten through grade 12), as determined under State law. 

The above-the-line deduction for eligible educators is not allowed 

for taxable years beginning after December 31, 2014. 

REASONS FOR CHANGE

The Committee recognizes that many elementary and secondary 

school teachers provide substantial classroom resources at their 

own expense, and believe that it is appropriate to extend the 

present law deduction for such expenses in order to continue to 

partially offset the substantial costs such educators incur for the 

benefit of their students. Additionally, the Committee recognizes 

that teachers must often incur out-of-pocket expenses for professional development, and believes that it is appropriate to include 

these amounts as expenses eligible for the deduction. The Committee believes that it is appropriate to index the $250 maximum 

deduction amount for inflation, so as to prevent the real value of 

the deduction from eroding over time. Finally, the Committee believes it is appropriate to make this provision permanent law, rather than repeatedly extending it, often retroactively, for a year or 

two at a time. 

EXPLANATION OF PROVISION

The provision makes the deduction for eligible educator expenses 

permanent. The provision indexes the $250 maximum deduction 

amount for inflation, and provides that expenses for professional 

development shall also be considered eligible expenses for purposes 

of the deduction. 

EFFECTIVE DATE

The provision applies to taxable years beginning after December 

31, 2014. 


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III. VOTES OF THE COMMITTEE 

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the vote of the Committee on Ways and Means in its consideration of H.R. 2940, the ‘‘Educator Tax Relief Act of 2015,’’ on 

September 17, 2015. 

The Chairman’s amendment in the nature of a substitute was 

adopted by a voice vote (with a quorum being present). 

The bill, H.R. 2940, was ordered favorably reported as amended 

to the House of Representatives by a roll call vote of 23 yeas to 13 

nays (with a quorum being present). The vote was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Ryan ............................... X ........... ............. Mr. Levin .............................. ........... X .............

Mr. Johnson ........................... X ........... ............. Mr. Rangel ........................... ........... X .............

Mr. Brady .............................. X ........... ............. Mr. McDermott ..................... ........... X .............

Mr. Nunes ............................. X ........... ............. Mr. Lewis .............................. ........... X .............

Mr. Tiberi .............................. X ........... ............. Mr. Neal ............................... ........... X .............

Mr. Reichert .......................... X ........... ............. Mr. Becerra .......................... ........... X .............

Mr. Boustany ......................... X ........... ............. Mr. Doggett .......................... ........... X .............

Mr. Roskam ........................... X ........... ............. Mr. Thompson ...................... ........... ........... .............

Mr. Price ............................... X ........... ............. Mr. Larson ............................ ........... X .............

Mr. Buchanan ....................... X ........... ............. Mr. Blumenauer ................... ........... X .............

Mr. Smith (NE) ...................... X ........... ............. Mr. Kind ............................... ........... X .............

Ms. Jenkins ........................... X ........... ............. Mr. Pascrell .......................... ........... X .............

Mr. Paulsen ........................... X ........... ............. Mr. Crowley .......................... ........... ........... .............

Mr. Marchant ........................ X ........... ............. Mr. Davis .............................. ........... X .............

Ms. Black .............................. X ........... ............. Ms. Sanchez ......................... ........... X .............

Mr. Reed ............................... X 

Mr. Young ............................. X 

Mr. Kelly ................................ X 

Mr. Renacci ........................... X 

Mr. Meehan ........................... X 

Ms. Noem .............................. X 

Mr. Holding ........................... ...........

Mr. Smith (MO) ..................... X 

Mr. Dold ................................ X 

IV. BUDGET EFFECTS OF THE BILL 

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the effects on the budget of the bill, H.R. 2940, as reported. 

The bill, as reported, is estimated to have the following effect on 

Federal budget receipts for fiscal years 2016–2025: 

Fiscal years, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016–20 2016–25 

¥269 ¥236 ¥241 ¥260 ¥302 ¥306 ¥311 ¥319 ¥332 ¥335 ¥1,307 ¥2,909 

Note: Details do not add to totals due to rounding. 

Pursuant to clause 8 of rule XIII of the Rules of the House of 

Representatives, the following statement is made by the Joint Committee on Taxation with respect to the provisions of the bill amending the Internal Revenue Code of 1986: The gross budgetary effect 

(before incorporating macroeconomic effects) in any fiscal year is 

less than 0.25 percent of the current projected gross domestic product of the United States for that fiscal year; therefore, the bill is 


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not ‘‘major legislation’’ for purposes of requiring that the estimate 

include the budgetary effects of changes in economic output, employment, capital stock and other macroeconomic variables. 

B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX

EXPENDITURES BUDGET AUTHORITY

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee states that the bill involves no new or increased budget authority. The Committee further states that the revenue-reducing tax provisions involve increased tax expenditures. (See amounts in table in Part IV.A., 

above.) 

C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET

OFFICE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, requiring a cost estimate prepared by 

the CBO, the following statement by CBO is provided. 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, September 22, 2015. 

Hon. PAUL RYAN, 

Chairman, Committee on Ways and Means, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2940, the Educator Tax 

Relief Act of 2015. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Peter Huether. 

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 2940—Educator Tax Relief Act of 2015 

H.R. 2940 would amend the Internal Revenue Code to permanently extend and expand the tax deduction of up to $250 that is 

allowed for certain classroom expenses of teachers. Under current 

law the deduction is unavailable for taxable years after 2014, and 

H.R. 2940 would permanently extend the deduction. The bill would 

also expand eligible expenses to include those for professional development and index the maximum deduction for inflation. 

The staff of the Joint Committee on Taxation (JCT) estimates 

that enacting H.R. 2940 would reduce revenues, thus increasing 

federal deficits, by about $3 billion over the 2016–2025 period. 

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct 

spending or revenues. Enacting H.R. 2940 would result in revenue 

losses in each year beginning in 2016. The estimated increases in 

the deficit are shown in the following table. 

JCT has determined that the bill contains no intergovernmental 

or private-sector mandates as defined in the Unfunded Mandates 

Reform Act. 


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The CBO staff contact for this estimate is Peter Huether. The estimate was approved by David Weiner, Assistant Director for Tax 

Analysis. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2940, AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON WAYS AND MEANS ON SEPTEMBER 17, 2015 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016– 

2020 

2016– 

2025 

NET INCREASE IN THE DEFICIT 

Statutory Pay-As-You-Go Effects ........... 269 236 241 260 302 306 311 319 332 335 1,307 2,909 

Source: Staff of the Joint Committee on Taxation. 

Note: Components do not sum to totals because of rounding. 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE 

RULES OF THE HOUSE 

A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

With respect to clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives (relating to oversight findings), the Committee advises that it was as a result of the Committee’s review of 

the provisions of H.R. 2940 that the Committee concluded that it 

is appropriate to report the bill, as amended, favorably to the 

House of Representatives with the recommendation that the bill do 

pass. 

B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

With respect to clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the bill contains no measure that authorizes funding, so no statement of general performance goals and objectives for which any measure authorizes funding is required. 

C. INFORMATION RELATING TO UNFUNDED MANDATES

This information is provided in accordance with section 423 of 

the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104–4). 

The Committee has determined that the bill does not contain 

Federal mandates on the private sector. The Committee has determined that the bill does not impose a Federal intergovernmental 

mandate on State, local, or tribal governments. 

D. APPLICABILITY OF HOUSE RULE XXI 5(b) 

Rule XXI 5(b) of the Rules of the House of Representatives provides, in part, that ‘‘A bill or joint resolution, amendment, or conference report carrying a Federal income tax rate increase may not 

be considered as passed or agreed to unless so determined by a 

vote of not less than three-fifths of the Members voting, a quorum 

being present.’’ The Committee has carefully reviewed the bill, and 

states that the bill does not involve any Federal income tax rate 

increases within the meaning of the rule. 


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E. TAX COMPLEXITY ANALYSIS

Section 4022(b) of the Internal Revenue Service Restructuring 

and Reform Act of 1998 (‘‘IRS Reform Act’’) requires the staff of the 

Joint Committee on Taxation (in consultation with the Internal 

Revenue Service and the Treasury Department) to provide a tax 

complexity analysis. The complexity analysis is required for all legislation reported by the Senate Committee on Finance, the House 

Committee on Ways and Means, or any committee of conference if 

the legislation includes a provision that directly or indirectly 

amends the Internal Revenue Code and has widespread applicability to individuals or small businesses. 

Pursuant to clause 3(h)(1) of rule XIII of the Rules of the House 

of Representatives, the staff of the Joint Committee on Taxation 

has determined that a complexity analysis is not required under 

section 4022(b) of the IRS Reform Act because the bill contains no 

provisions that amend the Internal Revenue Code and that have 

‘‘widespread applicability’’ to individuals or small businesses, within the meaning of the rule. 

F. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND

LIMITED TARIFF BENEFITS

With respect to clause 9 of rule XXI of the Rules of the House 

of Representatives, the Committee has carefully reviewed the provisions of the bill, and states that the provisions of the bill do not 

contain any congressional earmarks, limited tax benefits, or limited 

tariff benefits within the meaning of the rule. 

G. DUPLICATION OF FEDERAL PROGRAMS

In compliance with Sec. 3(g)(2) of H. Res. 5 (114th Congress), the 

Committee states that no provision of the bill establishes or reauthorizes: (1) a program of the Federal Government known to be duplicative of another Federal program, (2) a program included in any 

report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139, or (3) a program related 

to a program identified in the most recent Catalog of Federal Domestic Assistance, published pursuant to the Federal Program Information Act (Public Law 95–220, as amended by Public Law 98– 

169). 

H. DISCLOSURE OF DIRECTED RULE MAKINGS

In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), the 

following statement is made concerning directed rule makings: The 

Committee estimates that the bill requires no directed rule makings within the meaning of such section. 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS 

REPORTED 

A. TEXT OF EXISTING LAW AMENDED OR REPEALED BY THE BILL, AS

REPORTED

In compliance with clause 3(e)(1)(A) of rule XIII of the Rules of 

the House of Representatives, the text of each section proposed to 

be amended or repealed by the bill, as reported, is shown below: 


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TEXT OF EXISTING LAW AMENDED OR REPEALED BY THE BILL, AS

REPORTED

In compliance with clause 3(e)(1)(A) of rule XIII of the Rules of 

the House of Representatives, the text of each section proposed to 

be amended or repealed by the bill, as reported, is shown below: 

SECTION 62 OF THE INTERNAL REVENUE CODE OF 1986 

SEC. 62. ADJUSTED GROSS INCOME DEFINED. 

(a) GENERAL RULE.—For purposes of this subtitle, the term ‘‘adjusted gross income’’ means, in the case of an individual, gross income minus the following deductions: 

(1) TRADE AND BUSINESS DEDUCTIONS.—The deductions allowed by this chapter (other than by part VII of this subchapter) which are attributable to a trade or business carried 

on by the taxpayer, if such trade or business does not consist 

of the performance of services by the taxpayer as an employee. 

(2) CERTAIN TRADE AND BUSINESS DEDUCTIONS OF EMPLOY- EES.— (A) REIMBURSED EXPENSES OF EMPLOYEES.—The deductions allowed by part VI (section 161 and following) which 

consist of expenses paid or incurred by the taxpayer, in 

connection with the performance by him of services as an 

employee, under a reimbursement or other expense allowance arrangement with his employer. The fact that the reimbursement may be provided by a third party shall not 

be determinative of whether or not the preceding sentence 

applies. 

(B) CERTAIN EXPENSES OF PERFORMING ARTISTS.—The deductions allowed by section 162 which consist of expenses 

paid or incurred by a qualified performing artist in connection with the performances by him of services in the performing arts as an employee. 

(C) CERTAIN EXPENSES OF OFFICIALS.—The deductions allowed by section 162 which consist of expenses paid or incurred with respect to services performed by an official as 

an employee of a State or a political subdivision thereof in 

a position compensated in whole or in part on a fee basis. 

(D) CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY

SCHOOL TEACHERS.—In the case of taxable years beginning 

during 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 

2010, 2011, 2012, 2013, or 2014, the deductions allowed by 

section 162 which consist of expenses, not in excess of 

$250, paid or incurred by an eligible educator in connection with books, supplies (other than nonathletic supplies 

for courses of instruction in health or physical education), 

computer equipment (including related software and services) and other equipment, and supplementary materials 

used by the eligible educator in the classroom. 

(E) CERTAIN EXPENSES OF MEMBERS OF RESERVE COMPO- NENTS OF THE ARMED FORCES OF THE UNITED STATES.— The deductions allowed by section 162 which consist of expenses, determined at a rate not in excess of the rates for 

travel expenses (including per diem in lieu of subsistence) 

authorized for employees of agencies under subchapter I of 


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chapter 57 of title 5, United States Code, paid or incurred 

by the taxpayer in connection with the performance of 

services by such taxpayer as a member of a reserve component of the Armed Forces of the United States for any period during which such individual is more than 100 miles 

away from home in connection with such services. 

(3) LOSSES FROM SALE OR EXCHANGE OF PROPERTY.—The deductions allowed by part VI (sec. 161 and following) as losses 

from the sale or exchange of property. 

(4) DEDUCTIONS ATTRIBUTABLE TO RENTS AND ROYALTIES.— The deductions allowed by part VI (sec. 161 and following), by 

section 212 (relating to expenses for production of income), and 

by section 611 (relating to depletion) which are attributable to 

property held for the production of rents or royalties. 

(5) CERTAIN DEDUCTIONS OF LIFE TENANTS AND INCOME BENEFICIARIES OF PROPERTY.—In the case of a life tenant of property, or an income beneficiary of property held in trust, or an 

heir, legatee, or devisee of an estate, the deduction for depreciation allowed by section 167 and the deduction allowed by 

section 611. 

(6) PENSION, PROFIT-SHARING, AND ANNUITY PLANS OF SELF- EMPLOYED INDIVIDUALS.—In the case of an individual who is an 

employee within the meaning of section 401(c)(1), the deduction allowed by section 404. 

(7) RETIREMENT SAVINGS.—The deduction allowed by section 

219 (relating to deduction of certain retirement savings). 

(9) PENALTIES FORFEITED BECAUSE OF PREMATURE WITH- DRAWAL OF FUNDS FROM TIME SAVINGS ACCOUNTS OR DEPOSITS.—The deductions allowed by section 165 for losses incurred 

in any transaction entered into for profit, though not connected 

with a trade or business, to the extent that such losses include 

amounts forfeited to a bank, mutual savings bank, savings and 

loan association, building and loan association, cooperative 

bank or homestead association as a penalty for premature 

withdrawal of funds from a time savings account, certificate of 

deposit, or similar class of deposit. 

(10) ALIMONY.—The deduction allowed by section 215. 

(11) REFORESTATION EXPENSES.—The deduction allowed by 

section 194. 

(12) CERTAIN REQUIRED REPAYMENTS OF SUPPLEMENTAL UNEMPLOYMENT COMPENSATION BENEFITS.—The deduction allowed 

by section 165 for the repayment to a trust described in paragraph (9) or (17) of section 501(c) of supplemental unemployment compensation benefits received from such trust if such 

repayment is required because of the receipt of trade readjustment allowances under section 231 or 232 of the Trade Act of 

1974 (19 U.S.C. Sec. 2291 and 2292). 

(13) JURY DUTY PAY REMITTED TO EMPLOYER.—Any deduction 

allowable under this chapter by reason of an individual remitting any portion of any jury pay to such individual’s employer 

in exchange for payment by the employer of compensation for 

the period such individual was performing jury duty. For purposes of the preceding sentence, the term ‘‘jury pay’’ means any 

payment received by the individual for the discharge of jury 

duty. 


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(15) MOVING EXPENSES.—The deduction allowed by section 

217. 

(16) ARCHER MSAS.—The deduction allowed by section 220. 

(17) INTEREST ON EDUCATION LOANS.—The deduction allowed 

by section 221. 

(18) HIGHER EDUCATION EXPENSES.—The deduction allowed 

by section 222. 

(19) HEALTH SAVINGS ACCOUNTS.—The deduction allowed by 

section 223. 

(20) COSTS INVOLVING DISCRIMINATION SUITS, ETC..—Any deduction allowable under this chapter for attorney fees and 

court costs paid by, or on behalf of, the taxpayer in connection 

with any action involving a claim of unlawful discrimination 

(as defined in subsection (e)) or a claim of a violation of subchapter III of chapter 37 of title 31, United States Code or a 

claim made under section 1862(b)(3)(A) of the Social Security 

Act (42 U.S.C. 1395y(b)(3)(A)). The preceding sentence shall 

not apply to any deduction in excess of the amount includible 

in the taxpayer’s gross income for the taxable year on account 

of a judgment or settlement (whether by suit or agreement and 

whether as lump sum or periodic payments) resulting from 

such claim. 

(21) ATTORNEYS FEES RELATING TO AWARDS TO WHISTLEBLOWERS.—Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under section 7623(b) (relating to awards to whistleblowers). The preceding sentence 

shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on 

account of such award. 

Nothing in this section shall permit the same item to be deducted more than once. 

(b) QUALIFIED PERFORMING ARTIST.— 

(1) IN GENERAL.—For purposes of subsection (a)(2)(B), the 

term ‘‘qualified performing artist’’ means, with respect to any 

taxable year, any individual if— 

(A) such individual performed services in the performing 

arts as an employee during the taxable year for at least 2 

employers, 

(B) the aggregate amount allowable as a deduction 

under section 162 in connection with the performance of 

such services exceeds 10 percent of such individual’s gross 

income attributable to the performance of such services, 

and 

(C) the adjusted gross income of such individual for the 

taxable year (determined without regard to subsection 

(a)(2)(B)) does not exceed $16,000. 

(2) NOMINAL EMPLOYER NOT TAKEN INTO ACCOUNT.—An individual shall not be treated as performing services in the performing arts as an employee for any employer during any taxable year unless the amount received by such individual from 

such employer for the performance of such services during the 

taxable year equals or exceeds $200. 

(3) SPECIAL RULES FOR MARRIED COUPLES.— 


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(A) IN GENERAL.—Except in the case of a husband and 

wife who lived apart at all times during the taxable year, 

if the taxpayer is married at the close of the taxable year, 

subsection (a)(2)(B) shall apply only if the taxpayer and his 

spouse file a joint return for the taxable year. 

(B) APPLICATION OF PARAGRAPH (1).—In the case of a 

joint return— 

(i) paragraph (1) (other than subparagraph (C) 

thereof) shall be applied separately with respect to 

each spouse, but 

(ii) paragraph (1)(C) shall be applied with respect to 

their combined adjusted gross income. 

(C) DETERMINATION OF MARITAL STATUS.—For purposes 

of this subsection, marital status shall be determined 

under section 7703(a). 

(D) JOINT RETURN.—For purposes of this subsection, the 

term ‘‘joint return’’ means the joint return of a husband 

and wife made under section 6013. 

(c) CERTAIN ARRANGEMENTS NOT TREATED AS REIMBURSEMENT

ARRANGEMENTS.—For purposes of subsection (a)(2)(A), an arrangement shall in no event be treated as a reimbursement or other expense allowance arrangement if— 

(1) such arrangement does not require the employee to substantiate the expenses covered by the arrangement to the person providing the reimbursement, or 

(2) such arrangement provides the employee the right to retain any amount in excess of the substantiated expenses covered under the arrangement. 

The substantiation requirements of the preceding sentence shall 

not apply to any expense to the extent that substantiation is not 

required under section 274(d) for such expense by reason of the 

regulations prescribed under the 2nd sentence thereof. 

(d) DEFINITION; SPECIAL RULES.— 

(1) ELIGIBLE EDUCATOR.— 

(A) IN GENERAL.—For purposes of subsection (a)(2)(D), 

the term ‘‘eligible educator’’ means, with respect to any 

taxable year, an individual who is a kindergarten through 

grade 12 teacher, instructor, counselor, principal, or aide 

in a school for at least 900 hours during a school year. 

(B) SCHOOL.—The term ‘‘school’’ means any school which 

provides elementary education or secondary education 

(kindergarten through grade 12), as determined under 

State law. 

(2) COORDINATION WITH EXCLUSIONS.—A deduction shall be 

allowed under subsection (a)(2)(D) for expenses only to the extent the amount of such expenses exceeds the amount excludable under section 135, 529(c)(1), or 530(d)(2) for the taxable 

year. 

(e) UNLAWFUL DISCRIMINATION DEFINED.—For purposes of subsection (a)(20), the term ‘‘unlawful discrimination’’ means an act 

that is unlawful under any of the following: 

(1) Section 302 of the Civil Rights Act of 1991 (2 U.S.C. 

1202). 


emcdonald on DSK67QTVN1PROD with HEARING
13 

(2) Section 201, 202, 203, 204, 205, 206, or 207 of the Congressional Accountability Act of 1995 (2 U.S.C. 1311, 1312, 

1313, 1314, 1315, 1316, or 1317). 

(3) The National Labor Relations Act (29 U.S.C. 151 et seq.). 

(4) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 

seq.). 

(5) Section 4 or 15 of the Age Discrimination in Employment 

Act of 1967 (29 U.S.C. 623 or 633a). 

(6) Section 501 or 504 of the Rehabilitation Act of 1973 (29 

U.S.C. 791 or 794). 

(7) Section 510 of the Employee Retirement Income Security 

Act of 1974 (29 U.S.C. 1140). 

(8) Title IX of the Education Amendments of 1972 (20 U.S.C. 

1681 et seq.). 

(9) The Employee Polygraph Protection Act of 1988 (29 

U.S.C. 2001 et seq.). 

(10) The Worker Adjustment and Retraining Notification Act 

(29 U.S.C. 2102 et seq.). 

(11) Section 105 of the Family and Medical Leave Act of 

1993 (29 U.S.C. 2615). 

(12) Chapter 43 of title 38, United States Code (relating to 

employment and reemployment rights of members of the uniformed services). 

(13) Section 1977, 1979, or 1980 of the Revised Statutes (42 

U.S.C. 1981, 1983, or 1985). 

(14) Section 703, 704, or 717 of the Civil Rights Act of 1964 

(42 U.S.C. 2000e-2, 2000e-3, or 2000e-16). 

(15) Section 804, 805, 806, 808, or 818 of the Fair Housing 

Act (42 U.S.C. 3604, 3605, 3606, 3608, or 3617). 

(16) Section 102, 202, 302, or 503 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12112, 12132, 12182, or 12203). 

(17) Any provision of Federal law (popularly known as whistleblower protection provisions) prohibiting the discharge of an 

employee, the discrimination against an employee, or any other 

form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted under Federal law. 

(18) Any provision of Federal, State, or local law, or common 

law claims permitted under Federal, State, or local law— 

(i) providing for the enforcement of civil rights, or 

(ii) regulating any aspect of the employment relationship, including claims for wages, compensation, or benefits, 

or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or 

taking other actions permitted by law. 

B. CHANGES IN EXISTING LAW PROPOSED BY THE BILL, AS REPORTED

In compliance with clause 3(e)(1)(B) of rule XIII of the Rules of 

the House of Representatives, changes in existing law proposed by 

the bill, as reported, are shown as follows (existing law proposed 

to be omitted is enclosed in black brackets, new matter is printed 

in italics, existing law in which no change is proposed is shown in 

roman): 


emcdonald on DSK67QTVN1PROD with HEARING
14 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e)(1)(B) of rule XIII of the Rules of 

the House of Representatives, changes in existing law proposed by 

the bill, as reported, are shown as follows (existing law proposed 

to be omitted is enclosed in black brackets, new matter is printed 

in italics, and existing law in which no change is proposed is shown 

in roman): 

SECTION 62 OF THE INTERNAL REVENUE CODE OF 1986 

SEC. 62. ADJUSTED GROSS INCOME DEFINED. 

(a) GENERAL RULE.—For purposes of this subtitle, the term ‘‘adjusted gross income’’ means, in the case of an individual, gross income minus the following deductions: 

(1) TRADE AND BUSINESS DEDUCTIONS.—The deductions allowed by this chapter (other than by part VII of this subchapter) which are attributable to a trade or business carried 

on by the taxpayer, if such trade or business does not consist 

of the performance of services by the taxpayer as an employee. 

(2) CERTAIN TRADE AND BUSINESS DEDUCTIONS OF EMPLOY- EES.— (A) REIMBURSED EXPENSES OF EMPLOYEES.—The deductions allowed by part VI (section 161 and following) which 

consist of expenses paid or incurred by the taxpayer, in 

connection with the performance by him of services as an 

employee, under a reimbursement or other expense allowance arrangement with his employer. The fact that the reimbursement may be provided by a third party shall not 

be determinative of whether or not the preceding sentence 

applies. 

(B) CERTAIN EXPENSES OF PERFORMING ARTISTS.—The deductions allowed by section 162 which consist of expenses 

paid or incurred by a qualified performing artist in connection with the performances by him of services in the performing arts as an employee. 

(C) CERTAIN EXPENSES OF OFFICIALS.—The deductions allowed by section 162 which consist of expenses paid or incurred with respect to services performed by an official as 

an employee of a State or a political subdivision thereof in 

a position compensated in whole or in part on a fee basis. 

(D) CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY

SCHOOL TEACHERS.—øIn the case of taxable years beginning during 2002, 2003, 2004, 2005, 2006, 2007, 2008, 

2009, 2010, 2011, 2012, 2013, or 2014, the deductions¿ The 

deductions allowed by section 162 which consist of ex- penses, not in excess of $250, paid or incurred by an eligible øeducator in connection with books, supplies (other 

than nonathletic supplies for courses of instruction in 

health or physical education), computer equipment (including related software and services) and other equipment, 

and supplementary materials used by the eligible educator 

in the classroom.¿ educator— 

(i) by reason of the participation of the educator in 

professional development courses related to the curriculum in which the educator provides instruction or 


emcdonald on DSK67QTVN1PROD with HEARING
15 

to the students for which the educator provides instruction, and 

(ii) in connection with books, supplies (other than 

nonathletic supplies for courses of instruction in health 

or physical education), computer equipment (including 

related software and services) and other equipment, 

and supplementary materials used by the eligible educator in the classroom. 

(E) CERTAIN EXPENSES OF MEMBERS OF RESERVE COMPO- NENTS OF THE ARMED FORCES OF THE UNITED STATES.— The deductions allowed by section 162 which consist of expenses, determined at a rate not in excess of the rates for 

travel expenses (including per diem in lieu of subsistence) 

authorized for employees of agencies under subchapter I of 

chapter 57 of title 5, United States Code, paid or incurred 

by the taxpayer in connection with the performance of 

services by such taxpayer as a member of a reserve component of the Armed Forces of the United States for any period during which such individual is more than 100 miles 

away from home in connection with such services. 

(3) LOSSES FROM SALE OR EXCHANGE OF PROPERTY.—The deductions allowed by part VI (sec. 161 and following) as losses 

from the sale or exchange of property. 

(4) DEDUCTIONS ATTRIBUTABLE TO RENTS AND ROYALTIES.— The deductions allowed by part VI (sec. 161 and following), by 

section 212 (relating to expenses for production of income), and 

by section 611 (relating to depletion) which are attributable to 

property held for the production of rents or royalties. 

(5) CERTAIN DEDUCTIONS OF LIFE TENANTS AND INCOME BENEFICIARIES OF PROPERTY.—In the case of a life tenant of property, or an income beneficiary of property held in trust, or an 

heir, legatee, or devisee of an estate, the deduction for depreciation allowed by section 167 and the deduction allowed by 

section 611. 

(6) PENSION, PROFIT-SHARING, AND ANNUITY PLANS OF SELF- EMPLOYED INDIVIDUALS.—In the case of an individual who is an 

employee within the meaning of section 401(c)(1), the deduction allowed by section 404. 

(7) RETIREMENT SAVINGS.—The deduction allowed by section 

219 (relating to deduction of certain retirement savings). 

(9) PENALTIES FORFEITED BECAUSE OF PREMATURE WITHDRAWAL OF FUNDS FROM TIME SAVINGS ACCOUNTS OR DEPOSITS.—The deductions allowed by section 165 for losses incurred 

in any transaction entered into for profit, though not connected 

with a trade or business, to the extent that such losses include 

amounts forfeited to a bank, mutual savings bank, savings and 

loan association, building and loan association, cooperative 

bank or homestead association as a penalty for premature 

withdrawal of funds from a time savings account, certificate of 

deposit, or similar class of deposit. 

(10) ALIMONY.—The deduction allowed by section 215. 

(11) REFORESTATION EXPENSES.—The deduction allowed by 

section 194. 

(12) CERTAIN REQUIRED REPAYMENTS OF SUPPLEMENTAL UNEMPLOYMENT COMPENSATION BENEFITS.—The deduction allowed 


emcdonald on DSK67QTVN1PROD with HEARING
16 

by section 165 for the repayment to a trust described in paragraph (9) or (17) of section 501(c) of supplemental unemployment compensation benefits received from such trust if such 

repayment is required because of the receipt of trade readjustment allowances under section 231 or 232 of the Trade Act of 

1974 (19 U.S.C. Sec. 2291 and 2292). 

(13) JURY DUTY PAY REMITTED TO EMPLOYER.—Any deduction 

allowable under this chapter by reason of an individual remitting any portion of any jury pay to such individual’s employer 

in exchange for payment by the employer of compensation for 

the period such individual was performing jury duty. For purposes of the preceding sentence, the term ‘‘jury pay’’ means any 

payment received by the individual for the discharge of jury 

duty. 

(15) MOVING EXPENSES.—The deduction allowed by section 

217. 

(16) ARCHER MSAS.—The deduction allowed by section 220. 

(17) INTEREST ON EDUCATION LOANS.—The deduction allowed 

by section 221. 

(18) HIGHER EDUCATION EXPENSES.—The deduction allowed 

by section 222. 

(19) HEALTH SAVINGS ACCOUNTS.—The deduction allowed by 

section 223. 

(20) COSTS INVOLVING DISCRIMINATION SUITS, ETC..—Any deduction allowable under this chapter for attorney fees and 

court costs paid by, or on behalf of, the taxpayer in connection 

with any action involving a claim of unlawful discrimination 

(as defined in subsection (e)) or a claim of a violation of subchapter III of chapter 37 of title 31, United States Code or a 

claim made under section 1862(b)(3)(A) of the Social Security 

Act (42 U.S.C. 1395y(b)(3)(A)). The preceding sentence shall 

not apply to any deduction in excess of the amount includible 

in the taxpayer’s gross income for the taxable year on account 

of a judgment or settlement (whether by suit or agreement and 

whether as lump sum or periodic payments) resulting from 

such claim. 

(21) ATTORNEYS FEES RELATING TO AWARDS TO WHISTLE- BLOWERS.—Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under section 7623(b) (relating to awards to whistleblowers). The preceding sentence 

shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on 

account of such award. 

Nothing in this section shall permit the same item to be deducted more than once. 

(b) QUALIFIED PERFORMING ARTIST.— 

(1) IN GENERAL.—For purposes of subsection (a)(2)(B), the 

term ‘‘qualified performing artist’’ means, with respect to any 

taxable year, any individual if— 

(A) such individual performed services in the performing 

arts as an employee during the taxable year for at least 2 

employers, 

(B) the aggregate amount allowable as a deduction 

under section 162 in connection with the performance of 


emcdonald on DSK67QTVN1PROD with HEARING
17 

such services exceeds 10 percent of such individual’s gross 

income attributable to the performance of such services, 

and 

(C) the adjusted gross income of such individual for the 

taxable year (determined without regard to subsection 

(a)(2)(B)) does not exceed $16,000. 

(2) NOMINAL EMPLOYER NOT TAKEN INTO ACCOUNT.—An individual shall not be treated as performing services in the performing arts as an employee for any employer during any taxable year unless the amount received by such individual from 

such employer for the performance of such services during the 

taxable year equals or exceeds $200. 

(3) SPECIAL RULES FOR MARRIED COUPLES.— 

(A) IN GENERAL.—Except in the case of a husband and 

wife who lived apart at all times during the taxable year, 

if the taxpayer is married at the close of the taxable year, 

subsection (a)(2)(B) shall apply only if the taxpayer and his 

spouse file a joint return for the taxable year. 

(B) APPLICATION OF PARAGRAPH (1).—In the case of a 

joint return— 

(i) paragraph (1) (other than subparagraph (C) 

thereof) shall be applied separately with respect to 

each spouse, but 

(ii) paragraph (1)(C) shall be applied with respect to 

their combined adjusted gross income. 

(C) DETERMINATION OF MARITAL STATUS.—For purposes 

of this subsection, marital status shall be determined 

under section 7703(a). 

(D) JOINT RETURN.—For purposes of this subsection, the 

term ‘‘joint return’’ means the joint return of a husband 

and wife made under section 6013. 

(c) CERTAIN ARRANGEMENTS NOT TREATED AS REIMBURSEMENT

ARRANGEMENTS.—For purposes of subsection (a)(2)(A), an arrangement shall in no event be treated as a reimbursement or other expense allowance arrangement if— 

(1) such arrangement does not require the employee to substantiate the expenses covered by the arrangement to the person providing the reimbursement, or 

(2) such arrangement provides the employee the right to retain any amount in excess of the substantiated expenses covered under the arrangement. 

The substantiation requirements of the preceding sentence shall 

not apply to any expense to the extent that substantiation is not 

required under section 274(d) for such expense by reason of the 

regulations prescribed under the 2nd sentence thereof. 

(d) DEFINITION; SPECIAL RULES.— 

(1) ELIGIBLE EDUCATOR.— 

(A) IN GENERAL.—For purposes of subsection (a)(2)(D), 

the term ‘‘eligible educator’’ means, with respect to any 

taxable year, an individual who is a kindergarten through 

grade 12 teacher, instructor, counselor, principal, or aide 

in a school for at least 900 hours during a school year. 

(B) SCHOOL.—The term ‘‘school’’ means any school which 

provides elementary education or secondary education 


emcdonald on DSK67QTVN1PROD with HEARING
18 

(kindergarten through grade 12), as determined under 

State law. 

(2) COORDINATION WITH EXCLUSIONS.—A deduction shall be 

allowed under subsection (a)(2)(D) for expenses only to the extent the amount of such expenses exceeds the amount excludable under section 135, 529(c)(1), or 530(d)(2) for the taxable 

year. 

(3) INFLATION ADJUSTMENT.—In the case of any taxable year beginning after 2014, the $250 amount in subsection (a)(2)(D) 

shall be increased by an amount equal to— 

(A) such dollar amount, multiplied by 

(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year 

begins, determined by substituting ‘‘calendar year 2013’’ for 

‘‘calendar year 1992’’ in subparagraph (B) thereof. 

Any increase determined under the preceding sentence shall be 

rounded to the nearest multiple of $50. 

(e) UNLAWFUL DISCRIMINATION DEFINED.—For purposes of subsection (a)(20), the term ‘‘unlawful discrimination’’ means an act 

that is unlawful under any of the following: 

(1) Section 302 of the Civil Rights Act of 1991 (2 U.S.C. 

1202). 

(2) Section 201, 202, 203, 204, 205, 206, or 207 of the Congressional Accountability Act of 1995 (2 U.S.C. 1311, 1312, 

1313, 1314, 1315, 1316, or 1317). 

(3) The National Labor Relations Act (29 U.S.C. 151 et seq.). 

(4) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 

seq.). 

(5) Section 4 or 15 of the Age Discrimination in Employment 

Act of 1967 (29 U.S.C. 623 or 633a). 

(6) Section 501 or 504 of the Rehabilitation Act of 1973 (29 

U.S.C. 791 or 794). 

(7) Section 510 of the Employee Retirement Income Security 

Act of 1974 (29 U.S.C. 1140). 

(8) Title IX of the Education Amendments of 1972 (20 U.S.C. 

1681 et seq.). 

(9) The Employee Polygraph Protection Act of 1988 (29 

U.S.C. 2001 et seq.). 

(10) The Worker Adjustment and Retraining Notification Act 

(29 U.S.C. 2102 et seq.). 

(11) Section 105 of the Family and Medical Leave Act of 

1993 (29 U.S.C. 2615). 

(12) Chapter 43 of title 38, United States Code (relating to 

employment and reemployment rights of members of the uniformed services). 

(13) Section 1977, 1979, or 1980 of the Revised Statutes (42 

U.S.C. 1981, 1983, or 1985). 

(14) Section 703, 704, or 717 of the Civil Rights Act of 1964 

(42 U.S.C. 2000e-2, 2000e-3, or 2000e-16). 

(15) Section 804, 805, 806, 808, or 818 of the Fair Housing 

Act (42 U.S.C. 3604, 3605, 3606, 3608, or 3617). 

(16) Section 102, 202, 302, or 503 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12112, 12132, 12182, or 12203). 

(17) Any provision of Federal law (popularly known as whistleblower protection provisions) prohibiting the discharge of an 


emcdonald on DSK67QTVN1PROD with HEARING
19 

employee, the discrimination against an employee, or any other 

form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted under Federal law. 

(18) Any provision of Federal, State, or local law, or common 

law claims permitted under Federal, State, or local law— 

(i) providing for the enforcement of civil rights, or 

(ii) regulating any aspect of the employment relationship, including claims for wages, compensation, or benefits, 

or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or 

taking other actions permitted by law. 


emcdonald on DSK67QTVN1PROD with HEARING
(20) 

VII. DISSENTING VIEWS 

The five permanent, unpaid-for tax extender bills approved by 

the Republicans at the markup would add more than $411 billion 

to the deficit. Combined with the eleven tax bills that were approved by the Republicans in previous markups this Congress, 

these sixteen tax bills would add more than $1 trillion to the deficit. In the 113th Congress, Ways and Means Committee Republicans selectively approved fourteen of the more than fifty expired 

tax provisions, totaling more than $825 billion worth of deficit-financed, permanent tax cuts. This selective approach failed last 

Congress, with none of these permanent provisions being enacted 

into law. The bills marked up by the Committee set us down a partisan path, when we should be working in a responsible, bipartisan 

manner on tax reform. 

Even though a number of these bills were introduced individually 

with some bipartisan support, our opposition to these bills is based 

on the position that these tax provisions should not be made permanent without any revenue offset. The fiscally irresponsible approach that the Committee Republicans are taking with respect to 

this and other important legislation undermines the bipartisan 

support that some of the provisions enjoy. In fact, this provision 

was repealed in the Republican tax reform plan (H.R. 1) introduced 

by the Ways and Means Committee Chairman last Congress. The 

cost of this provision should be offset, and Republicans should stop 

playing games by passing these important provisions outside of 

comprehensive tax reform. The American people expect a tax code 

that maintains and supports our shared priorities, and each time 

the Committee considers these permanent tax bills in a piecemeal 

approach, it is taking a step in the wrong direction and away from 

comprehensive tax reform. 

We all support provisions that help our nation’s teachers with 

their out-of-pocket classroom expenses that continue to increase as 

a direct result of our underfunded education system. However, expired provisions must be dealt with in a comprehensive manner. 

The Republicans did not take up other tax extenders that also are 

important to Democratic Committee Members. Left to an uncertain 

fate are provisions like the Work Opportunity Tax Credit, the New 

Markets Tax Credit, and the renewable energy tax credits, as well 

as the long-term status of the Earned Income Tax Credit, the Child 

Tax Credit, and the American Opportunity Tax Credit. 

Sincerely, 

SANDER M. LEVIN, 

Ranking Member. 

Æ 


emcdonald on DSK67QTVN1PROD with HEARING