Plain English
GovGreed Synthesis ·
No Taxation Without Operation Act This bill suspends the collection of certain federal income taxes during a partial or full government shutdown that occurs due to a lapse in appropriations. If a partial or full government shutdown occurs, the bill provides that no citizen who is subject to ordinary federal income taxes on wages is liable for (1) federal income taxes during the shutdown, or (2) the accrual of any penalty or interest with respect to any federal individual income tax payment or any federal individual income tax return. The bill also exempts back pay from federal income taxes if it is received by certain federal employees or contractors who were not paid during a government shutdown and are subject to the Government Employee Fair Treatment Act of 2019. The Department of the Treasury must issue guidelines for employers to ensure compliance with this bill for tipped, hourly wage, salaried, and all other covered employees.
Market Impact Map
Action Timeline
2025-10-06
Referred to the House Committee on Ways and Means.
2025-10-06
Introduced in House
2025-10-06
Introduced in House
Full Bill Text
119 HR 5695 IH: No Taxation Without Operation Act U.S. House of Representatives 2025-10-06 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 5695 IN THE HOUSE OF REPRESENTATIVES October 6, 2025 Mr. Bresnahan introduced the following bill; which was referred to the Committee on Ways and Means A BILL To suspend Federal individual income taxes during a lapse in appropriations, and for other purposes. 1. Short title This Act may be cited as the No Taxation Without Operation Act . 2. Suspension of Federal income tax collection during a lapse in appropriations (a) In general Notwithstanding any other provision of law, during any partial or full government shutdown— (1) no citizen subject to ordinary Federal income taxes on wages shall be liable for— (A) Federal income taxes during the duration of a partial or full government shutdown, or (B) the accrual of any penalty or interest with respect to any Federal individual income tax payment or any Federal individual income tax return, (2) for any furloughed Federal employee or contractor who is furloughed or working without pay during a partial or full government shutdown and is subject to the Government Employee Fair Treatment Act of 2019, their backpay shall not be subject to Federal income taxes, and (3) the Treasury Department shall issue guidelines for employers to ensure compliance of this Act for tipped, hourly wage, salaried, and all other covered employees. (b) Partial or full government shutdown For purposes of this section, the term partial or full government shutdown means any period during which a lapse in Federal appropriations results in a partial or full government shutdown.
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