May 6, 2021

Dear Speaker Pelosi, Majority Leader Schumer, Minority Leader McConnell and Minority Leader McCarthy:

As Congress considers legislation to rebuild U.S. infrastructure and strengthen the economy, it is critical that, in addition to improving the physical channels that support workforce mobility and relocation, you consider the public policies that support talent deployment and help keep U.S. business competitive, which includes reinstating the moving tax expense deduction and exclusion. Talent mobility and relocation underpin employers’ ability to stay globally competitive and contribute to economic recovery and growth, and we appreciate your bipartisan support of policies that will let employers and employees move to where work is going.

We are the associations that collectively represent the workforce mobility and relocation industry. The American Trucking Associations (ATA) is the voice America depends on to represent moving and storage companies. The moving industry alone supports 480,000 jobs annually. The International Association of Movers (IAM) comprises companies that provide moving, forwarding, shipping, logistics and related services in more than 170 countries. Worldwide ERC® represents more than 5,400 workforce mobility and relocation professionals, and approximately 80 percent of its members are small- to medium-size businesses.

Reinstating the moving tax expense deduction and exclusion would make it easier to move and relocate employees, which is essential for U.S. employers as they rebuild and strive to remain globally competitive. The deduction incentivizes finding a job by removing the financial hardship of “having to move” as a barrier to work, and it supports both mobile and remote workforces. It is estimated to have provided $1 billion in tax relief each year, which is significant to those businesses and employees involved in talent mobility and relocation.

Unfortunately, the 2017 Tax Cuts and Jobs Act eliminated this critical benefit through 2025. Reinstating the moving expense deduction and exclusion – which enjoyed more than 50 years of bipartisan congressional support – would benefit:

1. The Middle Class: Over 75 percent of taxpayers who claimed the deduction earned under $100,000 per year, with only 7 percent of taxpayers earning over $200,000. The majority of corporate transferees earn between $90,000 and $130,000;
2. Small Businesses: Growing companies can reduce costs if they can claim a tax deduction when moving a new hire;
3. U.S. Taxpayers: It costs U.S. businesses up to $2 billion more per year and federal agencies approximately $150 million more per year to move employees without the deduction, which is money otherwise spent on investing in the workforce; and
4. Moving Companies: Over 75 percent of employers involved in moving and relocation are small businesses that support over 480,000 jobs. Reinstating the exclusion is of necessary assistance to lower the cost of moving, which will encourage more moves.

For these reasons, we respectfully ask that reinstatement of the moving expense deduction and exclusion be made effective from January 1, 2021. Relatedly, we also ask that, as our country rebuilds from the economic slowdown, Congress ensure that the corporate and individual tax rates remain competitive with the rest of the world. Reinstating the moving tax deduction and exclusion is a critical tool to ensure business remains competitive.

We thank you in advance for your consideration of our request. Should you have any questions, please do not hesitate to contact Rebecca Peters, Worldwide ERC® Vice President of Member Engagement and Public Policy, at rpeters@worldwideerc.org or (703) 842-3400. We look forward to working with you on improving U.S. infrastructure and the economy though public policies that support workforce mobility and relocation.

Sincerely,

Chris Spear
President and CEO
American Trucking Associations

Charles L. “Chuck” White, M.Ed., CAE
President
International Association of Movers

Lynn Shotwell, GMS, SHRM-SCP
President and CEO
Worldwide ERC®

Downoad the Orginal Letter