Congressmen Introduce Bill to Provide Tax Relief to Grocery Workers Amid COVID-19 Pandemic

Strategic Insights -

Pennsylvania congressmen Glenn Thompson and Dwight Evans have introduced a new bill aimed at providing tax relief to essential employees in the food and agriculture industry during the COVID-19 pandemic. The Assistance and Gratitude for Coronavirus Heroes in Agribusiness who are Invaluable to the Nation (AG CHAIN) Act (H.R. 6841) would grant a federal tax holiday and a payroll tax exemption for eligible individuals making less than $75,000 annually from February 15 to June 15.

Key Takeaways:

  • The AG CHAIN Act would provide tax relief to essential employees in the food and agriculture industry, defined by the Cybersecurity and Infrastructure Security Agency (CISA) as food processors, farmers, ranchers, fishermen, workers in meatpacking plants, and other critical roles in the supply chain.
  • The bill would grant a federal tax holiday and a payroll tax exemption for eligible individuals making less than $75,000 annually for the period of February 15 to June 15.
  • The Treasury Department would have the option to extend the benefit for an additional three months.
  • The legislation would build upon an earlier bill, the Giving Retailers and Our Convenience Employees Relief (GROCER) Act, introduced by Thompson and Evans on April 21.
  • Food industry representatives, including FMI-The Food Industry Association, the National Grocers Association, and the National Association of Truck Stop Operators, have expressed support for the AG CHAIN Act.
  • The bill has drawn plaudits from various food retail and production industry sectors, with many organizations praising the effort to recognize the contributions of essential workers in the food supply chain.

Statistics:

  • Over 2,000 letters have been sent by the National Grocers Association (NGA) to local members of Congress calling for legislation that grants tax relief to frontline grocery workers contributing during the COVID-19 outbreak.
  • UFCW's internal estimates confirm 35 meatpacking worker deaths and 60 grocery store worker deaths from COVID-19.
  • At least 3,272 meatpacking members and at least 4,157 grocery members have been directly impacted by the virus, according to UFCW's estimates.

Sources:

  • Reps. Glenn Thompson and Dwight Evans' press statement, "Assistance and Gratitude for Coronavirus Heroes in Agribusiness who are Invaluable to the Nation (AG CHAIN) Act".
  • FMI-The Food Industry Association press release, "FMI Urges Congress to Enact Sensible Liability Protections to Safeguard Industry's Efforts to Keep Americans Fed and Accessible to Essential Goods During COVID-19".
  • UFCW press statement, "UFCW Testifies in Senate Hearing on Employer Liability During COVID-19 Pandemic".
  • NGA press statement, "NGA Thanks Congressmen Thompson and Evans for Leadership on AG CHAIN Act".
  • H.R. 6841, "Assistance and Gratitude for Coronavirus Heroes in Agribusiness who are Invaluable to the Nation (AG CHAIN) Act".