[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2806 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2806

To amend the Internal Revenue Code of 1986 to provide tax relief to the 
                  unemployed, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 5, 2011

 Mr. Michaud (for himself and Ms. Richardson) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide tax relief to the 
                  unemployed, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Workforce Fairness and Tax Relief 
Act of 2011''.

SEC. 2. REPEAL OF TAX ON UNEMPLOYMENT COMPENSATION.

    (a) In General.--Section 85 of the Internal Revenue Code of 1986 is 
hereby repealed.
    (b) Conforming Amendments.--
            (1) Subsection (p) of section 3402 of such Code is amended 
        by striking paragraph (2) and by redesignating paragraph (3) as 
        paragraph (2).
            (2) Section 6050B of such Code (relating to returns 
        relating to unemployment compensation) is hereby repealed.
            (3) The table of sections for part II of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 85.
            (4) The table of sections for subpart B of part III of 
        subchapter A of chapter 61 of such Code is amended by striking 
        the item relating to section 6050B.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 2010.

SEC. 3. INCOME EXCLUSION FOR TRADE ADJUSTMENT ASSISTANCE.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139D the following new section:

``SEC. 139E. TRADE ADJUSTMENT ASSISTANCE.

    ``(a) In General.--Gross income shall not include trade adjustment 
assistance.
    ``(b) Trade Adjustment Assistance.--For purposes of this section, 
the term `trade adjustment assistance' means assistance authorized 
under chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et 
seq.).''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139D the following new item:

``Sec. 139E. Trade Adjustment Assistance.''.
    (c) Effective Date.--The amendment made by this section shall apply 
to amounts received after December 31, 2010.

SEC. 4. UNLIMITED PENALTY-FREE DISTRIBUTIONS FROM QUALIFIED RETIREMENT 
              PLANS TO INDIVIDUALS AFTER SEPARATION FROM EMPLOYMENT.

    (a) Unlimited Penalty-Free Distributions to Unemployed 
Individuals.--Clause (i) of section 72(t)(2)(D) of the Internal Revenue 
Code of 1986 is amended to read as follows:
                            ``(i) In general.--Distributions from a 
                        qualified retirement plan to an individual 
                        after separation from employment if--
                                    ``(I) the individual has received 
                                unemployment compensation for 24 
                                consecutive weeks under any Federal or 
                                State unemployment compensation law by 
                                reason of such separation; and
                                    ``(II) such distributions are made 
                                during any taxable year during which 
                                such unemployment compensation is paid 
                                or the succeeding taxable year.''.
    (b) Conforming Amendment.--The heading of section 72(t)(2)(D) of 
such Code is amended by striking ``for health insurance premiums''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2010.
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