Legislation provides tax stability for Americans focused on recovering and rebuilding their lives

April 18, 2023 - Representatives Katie Porter (D-CA) and Nancy Mace (R-SC) have introduced the bipartisan Tax Fairness for Disaster Victims Act, which would allow Americans in disaster zones to use their previous year’s income to calculate tax credits. Current law fails to protect disaster victims with disrupted incomes, which could reduce their tax credits during an already challenging time. 

Representative Katie Porter (D-CA)

“Americans recovering from disasters should be able to focus on rebuilding their lives without worrying about their taxes going up,” said Rep. Porter. “This legislation protects Californians, who have experienced devastating storms, wildfires, and other disasters in recent years. I’m proud to work across the aisle to give taxpayers more stability during the recovery process.”

In the aftermath of a disaster, many people suffer losses in income from businesses closing or employment disruption. The Earned Income Tax Credit (EITC) is calculated based on the amount people make, so a loss in income could reduce the help families get. The Tax Fairness for Disaster Victims Act would give taxpayers living in federally-declared disaster zones the option to use their previous year’s income to calculate tax credits, providing stability for people as they recover.

“When disaster strikes, it not only disrupts lives and businesses, but it can also unfairly impact tax liability for those affected,” said Rep. Mace. “Many small business owners and workers struggle to rebuild after a disaster, and the last thing they need is additional financial stress due to bureaucrats coming after them in their hardest hour. The Tax Fairness for Disaster Victims Act provides a common-sense, bipartisan solution by allowing disaster victims to use their previous year's income for calculating tax liabilities, providing much-needed stability during a challenging time.”

Congresswoman Porter is dedicated to restoring fairness to our broken tax system and to helping disaster victims recover quickly. She’s introduced bipartisan legislation that establishes a National Disaster Safety Board to better prepare and respond to natural disasters. Rep. Porter also successfully pushed for an investment in the IRS to improve customer service and crack down on ultra-wealthy tax cheats. She continues to advocate for the removal of unfair tax burdens on single parents and Californians. 
Source: Rep. Katie Porter