On October 17, 2013, NELA members and Affiliate leaders from around the country will convene in Washington, DC for Lobby Day 2013: Raising Our Voices For Change. If you are unable to join us in DC, this is your opportunity to raise your voice for change!
ACTION ALERT: CIVIL JUSTICE TAX FAIRNESS ACT (CJTFA, H.R. 2509/S. 1224)
Strong bipartisan support is needed to ensure that the Civil Justice Tax Fairness Act (CJTFA, H.R. 2509/S. 1224) is included in any tax reform or extender legislation enacted by Congress. Time is of the essence—please take action TODAY. Thank you for raising your voice for change!
With the enactment of the Small Business Job Protection Act of 1996 (P.L. 104-188), non-economic damages recovered in cases that do not arise from a physical injury—including employment cases brought under civil rights laws and other worker protection statutes—became taxable. In addition, workers who recover compensation for multiple years of back or front pay in one lump sum must pay taxes at higher rates because the entire amount is taxed in the year the settlement or award was received.
The bipartisan Civil Justice Tax Fairness Act of 2013 (CJTFA, H.R. 2509/S. 1224), introduced by Representatives John Lewis (D-GA), Jim Sensenbrenner (R-WI), Bobby Scott (D-VA), and Aaron Schock (R-IL), and Senators Ben Cardin (D-MD) and Susan Collins (R-ME), would end these inequities in unlawful discrimination cases (including employment and civil rights claims) by excluding non-economic damages from gross income and by allowing income averaging for multiple years of back or front pay. NELA and its coalition partners urge Congress to enact the CJTFA because:
- Current tax law is unfair, arbitrary, and confusing.
- The CJTFA promotes tax fairness by correcting inequities in the tax treatment of settlements and awards in employment and civil rights cases.
- The CJTFA encourages fair and prompt settlements, reduces costly litigation, and preserves judicial resources.
- The CJTFA has bipartisan support in Congress and is endorsed by both civil rights/employee organizations and business.
CALL your Senators and Representative and ask to speak to their legislative counsel who handles tax and/or judiciary issues. If they are not available leave a message for them and ask for a return call. To find your federal legislators’ phone numbers, staff contacts, lists of bills sponsored (including the CJTFA), visit NELA’s Grassroots Advocacy Center.
Please contact Julie Strandlie, NELA’s Legislative & Public Policy Director, at firstname.lastname@example.org or (202) 898-2880, ext. 115 if you have any questions about Virtual Lobby Day or NELA's legislative efforts.