Referred to the House Committee on Ways and Means.
This bill (Second Job Tax Relief Act of 2025) excludes compensation from designated secondary employment from federal gross income and from payroll and unemployment tax definitions for qualifying taxpayers. It allows taxpayers to designate a "primary employer" if paid hourly for at least 2,080 hours, phases out the exclusion above specified modified AGI thresholds ($100,000 individual, $150,000 joint) over $50,000, reimburses Social Security/Medicare Trust Funds from the general fund for lost payroll tax receipts, and sunsets the exclusion after five years.
Progressives emphasize deficit and regressivity concerns
Relative to its intended legislative type, this bill is a clear substantive tax-law change that is well integrated into the Internal Revenue Code but provides only moderate operational detail and limited administrative and accountability provisions.
This bill (Second Job Tax Relief Act of 2025) excludes compensation from designated secondary employment from federal gross income and from payroll and unemployment tax definitions for qualifying taxpayers.
It allows taxpayers to designate a "primary employer" if paid hourly for at least 2,080 hours, phases out the exclusion above specified modified AGI thresholds ($100,000 individual, $150,000 joint) over $50,000, reimburses Social Security/Medicare Trust Funds from the general fund for lost payroll tax receipts, and sunsets the exclusion after five years.
Amendments apply to amounts received after enactment.
Targeted tax break with fiscal costs and limited duration increases appeal but funding and Senate consensus risks lower enactment odds.
Relative to its intended legislative type, this bill is a clear substantive tax-law change that is well integrated into the Internal Revenue Code but provides only moderate operational detail and limited administrative and accountability provisions.
Progressives emphasize deficit and regressivity concerns
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize deficit and regressivity concerns
Skeptical.
While the bill increases take-home pay for some second-job workers, it likely shifts payroll funding costs to the general fund and may be regressive.
Concerns include reduced Social Security contributions' optics, deficit increases, and potential for employer or taxpayer gaming.
Mixed but cautiously open.
The bill provides clear take-home pay increases and work incentives, but raises fiscally relevant concerns: revenue loss offset by general fund transfers, administrative complexity, and a five-year sunset that limits long-term planning.
Would seek score and implementation details.
Generally favorable.
The bill cuts taxes on second-job earnings, increases take-home pay, and incentivizes work.
Some concerns exist about the temporary sunset and General Fund reimbursements, but overall it aligns with priorities of lowering tax burdens and encouraging labor participation.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Targeted tax break with fiscal costs and limited duration increases appeal but funding and Senate consensus risks lower enactment odds.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize deficit and regressivity concerns
Targeted tax break with fiscal costs and limited duration increases appeal but funding and Senate consensus risks lower enactment odds.
Relative to its intended legislative type, this bill is a clear substantive tax-law change that is well integrated into the Internal Revenue Code but provides only moderate operational detail and limited administrative…
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