Chairman Comer and Rep. Gill Applaud House Action to Ensure Tax Relief for D.C. Residents

WASHINGTON--Today, the House of Representatives passed legislation ensuring residents and businesses in the District of Columbia receive the full tax reform benefits provided under the Working Families Tax Cuts Act (WFTCA). H.J.Res. 142, introduced by Rep. Brandon Gill (R-Texas), prohibits the enactment of the D.C. Council's legislation, the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 and 2026, that decouples portions of the D.C. local tax code from specific federal tax-related provisions under the WFTCA. The passage of H.J.Res. 142 will increase the take-home pay, affordability, and the economy for Americans living in the District of Columbia. House Committee on Oversight and Government Reform Chairman James Comer (R-Ky.) and Rep. Gill applauded the passage of this legislation.

"The D.C. Council's actions are nothing more than a disingenuous cash-grab at the expense of American taxpayers and businesses. The Working Families Tax Cuts Act is one of the biggest tax cuts in recent history that allows Americans to keep more of their hard-earned money, protects seniors, and boosts economic growth. D.C. residents, like the rest of the country, should be able to experience the full benefits and relief this historic tax reform brings without having to worry about complicated administrative and compliance procedures when filing their taxes. I applaud Representative Gill for working to preserve these tax reforms in our nation's capital and relieve the financial burdens of local businesses, service and overtime workers, and elderly residents," said Chairman Comer.

"Thanks to President Trump, the Working Families Tax Cut stopped the largest tax hike since World War II, providing Americans with historic tax relief," said Rep. Gill. "The DC Council's actions would block DC residents, namely service workers, from receiving these federal tax credits, from non-taxable tips and overtime, and from keeping their hard-earned money in their wallets. I am joining my colleague Sen. Rick Scott of Florida in putting a stop to the DC Council's interference with America First tax relief. Thank you to Oversight Chairman Comer for prioritizing this matter!"

Congress has until February 23, 2026 to block the D.C. Council's legislation from taking effect. The D.C. Council's legislation prevents D.C. residents and business from benefitting from the following federal tax reforms at the local tax level that were passed by the Republican Congress and signed into law by President Trump:

• The increased standard deduction-meaning D.C. taxpayers that do not itemize will not be able to claim the full amount of the expanded standard deduction provided by the WFTCA;
• The No Tax on Social Security for senior citizens to claim up to $6,000 in additional personal deductions and keep more of their hard-earned money;
• The No Tax on Tips for qualified cash tips up to $25,000 for service workers making below $150,000 in gross income ($300,000 for joint filers);
• The No Tax on Overtime for individual earnings up to $12,500 ($25,000 for joint filers) for those making below $150,000 in gross income ($300,000 for joint filers);
• The No Tax on Auto Loan Interest for certain personal car loan deductions up to $10,000 for those making below $100,000 in gross income ($200,000 for joint filers);
• The full and immediate expensing of a business's domestic research and experimental expenditures in the tax year incurred to encourage investments and innovation in America instead of foreign nations;
• The new 100% expensing of qualified manufacturing and production property and improvements that helps fuel such commercial investment-instead of requiring such expenses to be amortized or depreciated under prior tax rules;
• The individual non-itemizers charitable deduction which increased to $1,000 ($2,000 for joint filers) under WFTCA for taxpayers taking the standard deduction-denying D.C. residents this additional charitable deduction; and
• The qualified small business stock gain exclusion for individual filers-completely denying D.C. residents this expanded deduction opportunity.

The resolution is endorsed by AMAC Action, America First Policy Institute, the D.C. Police Union, Heritage Action, the Independent Women's Forum, the International Franchise Association, the National Association of Convenience Stores, the National Association of Wholesaler-Distributors, the National Restaurant Association, the National Taxpayers Union (NTU), the Small Business & Entrepreneurship Council, and the U.S. Chamber of Commerce.