SQUEAL Act: Should Tax Deductions For the Living Expenses Incurred by Members of Congress be Eliminated? (S. 2033)

What is S. 2033?

(Updated May 30, 2019)

This bill — known as the SQUEAL Act — would eliminate the tax deduction for living expenses incurred by members of Congress, which is currently limited to $3,000 per year. Among the expenses that lawmakers can deduct under the tax break are meals, lodging, and other incidental business expenses while away from their home.

The bill’s full title is the Stop Questionable, Unnecessary, and Excessive Allowances for Legislators Act.

Argument in favor

Members of Congress shouldn’t get a tax break that lets them deduct their living expenses, like meals and lodging, when they’re in Washington, D.C. The deduction should be eliminated.

Argument opposed

Members of Congress need a tax deduction to help make up for the additional expenses they incur from splitting their time between home and Washington, D.C.

Impact

Members of Congress; and the Internal Revenue Service.

Cost of S. 2033

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Sen. Joni Ernst (R-IA) introduced this bill to “cut perks for elected officials and make Washington squeal” by eliminating a provision of the tax code that lets members of Congress deduct up to $3,000 annually for living expenses in the Washington, D.C. area:

“Iowans sent me to Congress to make Washington, D.C. squeal and that includes eliminating handouts to politicians. To achieve the ultimate goal of lowering tax rates for hardworking families and businesses, Congress is going to have to eliminate various loopholes and deductions in our outdated tax code. Congress should lead by example and offer up its own unnecessary tax break.”

Media:

• Sponsoring Sen. Joni Ernst (R-IA) Press Release
  
• Washington Times