DISAPPROVING THE ACTION OF THE DISTRICT OF COLUMBIA COUNCIL IN APPROVING THE D.C. INCOME AND FRANCHISE TAX CONFORMITY AND REVISION TEMPORARY AMENDMENT ACT OF 2025

On 2026-02-04, Representative Jason Smith (R-MO-8) delivered a floor speech titled "DISAPPROVING THE ACTION OF THE DISTRICT OF COLUMBIA COUNCIL IN APPROVING THE D.C. INCOME AND FRANCHISE TAX CONFORMITY AN" in the House. The speech addressed healthcare and also covered the economy, taxes. It referenced legislation including HR1, HR51, HRES1032, among other bills.

DISAPPROVING THE ACTION OF THE DISTRICT OF COLUMBIA COUNCIL IN APPROVING THE D.C. INCOME AND FRANCHISE TAX CONFORMITY AND REVISION TEMPORARY AMENDMENT ACT OF 2025

Congressional Record, Volume 172 Issue 25 (Wednesday, February 4, 2026) [Congressional Record Volume 172, Number 25 (Wednesday, February 4, 2026)] [House] [Pages H2002-H2008] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] DISAPPROVING THE ACTION OF THE DISTRICT OF COLUMBIA COUNCIL IN APPROVING THE D.C. INCOME AND FRANCHISE TAX CONFORMITY AND REVISION TEMPORARY AMENDMENT ACT OF 2025 Mr. GILL of Texas. Mr. Speaker, pursuant to House Resolution 1032, I call up the joint resolution (H.J. Res. 142) disapproving the action of the District of Columbia Council in approving the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025, and ask for its immediate consideration. The Clerk read the title of the joint resolution. The SPEAKER pro tempore. Pursuant to House Resolution 1032, the joint resolution is considered read. The text of the joint resolution is as follows: H.J. Res. 142 Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Congress disapproves of the action of the District of Columbia Council described as follows: The D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 (D.C. Act 26-217), enacted by the Council of the District of Columbia on December 20, 2025, and transmitted to Congress pursuant to section 602(c)(1) of the District of Columbia Home Rule Act on December 30, 2025. The SPEAKER pro tempore. The joint resolution shall be debatable for 1 hour, equally divided and controlled by the chair and ranking minority member of the Committee on Oversight and Government Reform or their respective designees. The gentleman from Texas (Mr. Gill) and the gentleman from Florida (Mr. Frost) each will control 30 minutes. The Chair now recognizes the gentleman from Texas (Mr. Gill). General Leave Mr. GILL of Texas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the measure under consideration. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Texas? There was no objection. Mr. GILL of Texas. Mr. Speaker, I yield myself such time as I may consume. [[Page H2003]] Mr. Speaker, I rise in support of H.J. Res. 142, a resolution disapproving the action of the District of Columbia Council in approving the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025. Congress has the constitutional right to review legislation passed by the D.C. Council under the D.C. Home Rule Act. It also has the authority to block such legislation. In this case, it should do just that. In December of this past year, the D.C. Council enacted, without the Mayor's support, legislation that denies tax relief to D.C. residents and businesses that was afforded to them by the Working Families Tax Cut Act. While D.C. taxpayers still enjoy the benefits of such tax relief with their Federal tax filings, they are being stripped of corresponding relief that should also be afforded to them at the local level. In other words, the D.C. Council has rejected tax provisions that help relieve the burdens faced by D.C. residents and businesses. There are nine tax provisions that the D.C. Council has completely opted out of in the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025. Seven of them are targeted at tax breaks for individuals. This includes service workers relying on tips as part of their wages, workers relying on overtime, senior citizens relying on Social Security, and even residents just trying to write off their charitable contributions. They are all being targeted by the D.C. Council. Specifically, the D.C. Council is opting out of the following tax provisions that House Republicans championed for all Americans: no tax on tips, no tax on overtime, no tax on Social Security for senior citizens, no tax on auto loan interest for certain personal car loan deductions, and even the increased standard deduction, meaning that D.C. taxpayers who do not itemize their tax deductions will not be able to claim the full amount of the federally expanded standard deduction in their local tax returns. In addition, individuals who take the standard deduction will not be afforded an additional charitable deduction like they will have in the Federal Tax Code. Stripping away this tax relief from the residents of D.C. is egregious, but, Mr. Speaker, that is not all. The D.C. Council has not stopped there. They are working also to ignore the Working Families Tax Cut Act's pro-economic growth business deductions. That is, the radical D.C. Council also wants to stunt local businesses and prevent economic growth. They are blocking the 100- percent expensing of qualified nonresidential manufacturing and property production and improvements that help fuel such commercial investment. Finally, the D.C. Council is blocking the full and immediate expensing of a business' domestic research and experimental expenditures. They apparently would rather have investments and innovation in other States or even foreign nations as opposed to right here at home in the Nation's Capital City. You might find yourself wondering why would the D.C. Council do this to their own residents and businesses. I will tell you why: It is because the Working Families Tax Cut Act was President Trump's bill. The D.C. Council would rather punish their own residents, their own people, than recognize the achievements of President Trump's legislation. This is anti-working class, anti-senior citizens, and of course antibusiness. They say they need more time to analyze and consider these provisions, the same provisions that had numerous congressional debates and hearings. These justifications are just excuses to play politics. It is all at the expense of local residents and businesses who want to and should be able to keep their hard-earned money in their pockets to reinvest in their families, communities, and businesses. The House must swiftly exercise its constitutional responsibility to oversee the District of Columbia and reject this misguided legislation from going into effect. I urge my colleagues on both sides of the aisle to unite in support of D.C. taxpayers and businesses and support this necessary resolution of disapproval. Mr. Speaker, I reserve the balance of my time. Mr. FROST. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I am strongly opposed to H.J. Res. 142, which would repeal provisions of a law enacted by the District of Columbia because D.C. deserves the right to govern itself. The Supreme Court has held that Congress can delegate full legislative authority to D.C. for local matters, but Republicans in Congress choose not to do so. Last year, President Trump and congressional Republicans passed the one, big, betrayal bill, a deeply unpopular law that is the single largest transfer of wealth and resources from the working class and the working poor to the ultrawealthy billionaires and corporations in our Nation's history. The law ripped healthcare coverage away from millions of Americans to give tax breaks and tax giveaways to billionaires and megacorporations. Not only that, but for States across the country, it has caused a revenue shortfall that has thrown State budgets into chaos, threatening services like healthcare, childcare, schools, eldercare, and emergency response. To protect against this, numerous States have passed laws to decouple their tax code from the tax provisions in the so-called One Big Beautiful Bill Act. This includes States like Maine, Virginia, Pennsylvania, Michigan, Colorado, and Alabama. This also includes the District of Columbia. To avoid a more than $600 million budget loss over the next 4 years from the big, betrayal bill tax changes, the D.C. Council enacted a decoupling law. As part of this law, D.C. increased the child tax credit and earned income tax credit benefits to put more money in the pockets of working families struggling to afford the basic necessities in their life. {time} 1330 H.J. Res. 142 would overturn this law and rip away the money that parents and low-earning families could use to stay afloat in this disastrous Trump economy. Today is just another day in Congress where instead of being on the floor debating legislation on healthcare, instead of debating legislation on bringing down the cost of groceries, instead of debating legislation on making sure we can make this country more affordable for working people, congressional Republicans want to use this time to attack working families in the District of Columbia. Overturning this law will create chaos for D.C. families and businesses at the start of tax filing season. The gentleman brought up businesses, but D.C. began accepting and processing tax returns on January 27. Families are already beginning to file their taxes and claim the newly expanded EITC. This resolution would force D.C. to suspend this year's tax filing season, which is already underway, for several months. Changing their tax code now would create additional hurdles and confusion for families and, yes, for local businesses, as well, especially families that are already counting on receiving that larger earned income tax credit to deal with the failure of congressional Republicans and Donald Trump to bring this economy to a place that works for working people. The D.C. business community even sent a letter to Congress urging opposition to this disapproval resolution because it would create chaos and financial instability. This group includes the Federal City Council, the D.C. Chamber of Commerce, the D.C. Association of Realtors, the D.C. Hospital Association, and the Hotel Association of Washington, D.C. They are all opposed to this resolution. The big betrayal act is so deeply unpopular that half of the public believes it will hurt the

Referenced legislation: HR1, HR51, SJRES102, HJRES142, HRES1032