WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) delivered the following opening statement at a markup of tax and tax administration legislation:

As prepared for delivery.

“Our entire agenda on the Ways and Means Committee has been to help the working men and women of America, and this bipartisan markup builds on that agenda.  

“The tax legislation we will consider helps some of the most vulnerable and overlooked people in our country: preschool teachers, natural disaster victims, and domestic violence survivors.

“Our first bill ensures that sexual assault survivors, who have already experienced unimaginable horror, are not taxed on actual damages that they received for their suffering. Rebuilding one’s life after abuse can be expensive. Many survivors have to find new housing, move, change jobs or enter therapy to begin healing from the abuse they have suffered. I’m glad this bill from Representatives Smucker and Gwen Moore ensures survivors don’t have to give a portion of those damages to the IRS when their own need is so great. The bill also provides parity in the treatment of sexual assault victims in the tax code with the treatment of physical assault victims, who already receive tax-free treatment for their damages. 

“Our second bill helps victims of natural disasters, including wildfires. This bill, introduced by Representatives Steube, Thompson, and Panetta, will be named in honor of our late colleague Doug LaMalfa who never gave up the fight to help the people he represented in California recover from natural disasters. We could go down this dais and recall the devastation we have seen in our communities after a natural disaster strikes. We can all agree that Americans hit by a disaster shouldn’t be hit by a financial disaster of a high tax bill. This bill allows Americans to deduct disaster-related losses and exclude wildfire compensatory payments from taxable income. Disaster victims should keep more of their own money to rebuild, restore, and reclaim their life and this policy moves the tax code closer to that principle. 

“Our next bill gives the same tax treatment to preschool teachers as their K-12 colleagues. K-12 teachers currently receive a tax deduction for buying classroom supplies out of their own pocket. The deduction can be as high as $350. Preschool teachers, on average, have lower incomes than their K-12 counterparts, yet do not enjoy this same benefit – even though many buy classroom supplies out of their own pocket. This bill from Representatives Panetta and Fitzpatrick makes preschool teachers and other early childhood educators eligible for the classroom supplies tax deduction. Pre-K teachers who claim the standard deduction will be able to layer this on top as additional tax relief. Ultimately, this policy invests not only in teachers, but the students who will have access to necessary classroom materials.

“Next we will consider two bills that push the IRS to better serve taxpayers.

“Our first makes the most-feared agency in government more taxpayer friendly. Given the advancement of AI and other modern technologies, engaging with the IRS should be made as seamless as possible for taxpayers. This bill, introduced by Oversight Subcommittee Chairman Schweikert and Representative Beyer, pushes the IRS to provide more modern customer service, like tracking the status of a tax refund the same way that Americans already track packages shipped by private companies. The agency will also be required to improve online accounts and build a user-friendly dashboard on the IRS website to provide information on call volume and wait times in real time. 

“The last bill – from the Chair and Ranking Member of our Tax Subcommittee, Representatives Kelly and Thompson – strengthens the IRS Whistleblower Program. Whistleblowers serve an important role in identifying tax evasion that undermines the integrity of our tax code. Improving whistleblower protections, ensuring fairer judicial review, and incentivizing timely program administration will go a long way in combatting fraud – something that has been a key priority of this committee. 

“I want to thank my colleagues on both sides of the aisle for introducing these taxpayer-first policies on behalf of the people you represent and the millions of Americans who will benefit from them.”