Gwen Moore

From the office of:

Gwen Moore

Sending Office: Honorable Gwen Moore
Sent By:

Dear Colleague,

We invite you to join as a cosponsor of
H.R. 4728, Youth Tax Fairness Act of 2019, a bill to amend the Internal Revenue Code to treat 1) military survivor benefits,
2) first responder survivor benefits, 3) tribal distributions, 4) scholarship and fellowship grants, 5) Alaska permanent fund dividends, and 6) social security benefits, as earned income of the recipient. 

Congresswoman Gwen Moore and Congressman Ron Estes introduced
H.R. 2810, Tax Fairness for Tribal Youth Act of 2019 in May, which received broad bipartisan support. Congresswoman Moore
has remained committed to providing broader relief to Gold Star families, the families of fallen first responders, tribal members and other sympathetic groups.  

In October, Congresswoman Gwen Moore and Congressman Ron Estes
H.R. 4728, Tax Fairness for Youth Act of 2019 as a suggestion to the Senate of all the fixes that we think should be made to the TCJA kiddie tax provision. 

Background Information

Prior to the Tax Cuts and Jobs Act of 2017 (TCJA), unearned income of children and young adults was subjected to the parental tax rate
if the parental tax rate was higher than the child’s tax rate.  Moreover, since 2007, these rules have applied to children who are 18 years old or who are full-time students between the ages of 18 and 24, disincentivizing low-income students from attending
college or pursuing other higher-educational opportunities because the recipients would be subject to a higher tax rate on their unearned income as full-time students. The TCJA  modified these tax rules by sharply increasing the effective tax rates on unearned
income of children and young adults by subjecting this income to the tax rates of trusts and estates (i.e., up to 37%) between 2018 through 2025.

These changes resulted in a particularly harsh effect on certain populations, including children of Gold Star families and Native Americans
who receive military and Veteran Affairs survivor benefit plan payments or tribal payments, because their parents are generally subject to lower rates than the trust and estate rates since military and tribal members are generally lower-income.

If you would like to cosponsor
H.R. 4728, Youth Tax Fairness Act of 2019, or have any questions, please contact Caroline
Frauman with Gwen Moore at

Related Legislative Issues

Selected legislative information: Economy, Family Issues, Taxes

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