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HR 7870 United States House · 118th Congress

Tip Tax Termination Act

Summary
Tip Tax Termination Act  This bill excludes from gross income, for income tax purposes, eligible tips not exceeding $20,000 in a taxable year. The bill defines eligible tips as amounts received by a taxpayer while performing services in a position that generally relies on tips as part of wages, including cosmetology, hospitality, and food service. This tax exclusion terminates with respect to tips received after 2028.
Issues: ✓ Budget & TaxesSupports Budget & TaxesExcludes tips from taxable income for service workers (cosmetology, hospitality, food service), providing tax relief to lower-income earners in tip-dependent roles.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes up to $20k in tips from taxable income for workers in tip-dependent roles (food service, hospitality), increasing net wages without altering actual tip amounts.95% confidence
Sub-Topics: Income Tax Minimum Wage
Bill status in committee 1 of 4 stages cleared
Introduction
Apr 2024
Committee Review
Floor Vote
President
Introduced Apr 5, 2024 Last action Apr 5, 2024
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Full legislative history

Actions timeline

Total actions
2
Key actions
0
Committee
1
Apr 5, 2024
House · Referred to committee
Referred to the House Committee on Ways and Means.
Apr 5, 2024
House · Introduced
Introduced in House
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Don Bacon
Don Bacon
RRepublican
NE
2