Referred to the House Committee on Ways and Means.
This bill creates a new above-the-line deduction for "qualified tips" (cash tips reported to employers) up to $25,000 per taxpayer, defines qualifying occupations by Treasury rule, and excludes certain higher-paid employees. It requires Treasury to publish a list of qualifying tip occupations and directs withholding tables be adjusted.
Liberals worry about revenue loss and prefer wage-floor solutions.
Relative to its intended legislative type, this bill clearly establishes a new tax deduction for qualified tips and extends an employer tax credit to specified beauty services.
This bill creates a new above-the-line deduction for "qualified tips" (cash tips reported to employers) up to $25,000 per taxpayer, defines qualifying occupations by Treasury rule, and excludes certain higher-paid employees.
It requires Treasury to publish a list of qualifying tip occupations and directs withholding tables be adjusted.
The bill also expands the existing employer payroll-tax tip credit (section 45B) to cover specified beauty services (barbering, hair, nail, esthetics, body/spa) and adjusts related minimum-wage language.
Plausible bipartisan appeal but material revenue cost, missing offsets, and administrative changes make enactment uncertain absent compromise or pay‑fors.
Relative to its intended legislative type, this bill clearly establishes a new tax deduction for qualified tips and extends an employer tax credit to specified beauty services. It integrates those changes into existing Code structure with explicit amendments and sets several administrative steps (Secretary list, withholding modifications) and an effective date.
Liberals worry about revenue loss and prefer wage-floor solutions.
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals worry about revenue loss and prefer wage-floor solutions.
Likely cautiously supportive of direct tax relief to tipped workers but concerned about revenue loss and whether it substitutes for higher wages.
Views extension to beauty services as recognition of service-sector workers, but prefers wage-floor solutions and stronger worker protections.
Some uncertainty about the Treasury list and exclusion thresholds could raise fairness questions.
Views the bill as a pragmatic, targeted tax relief for service workers and small businesses, but wants clear budgetary impact and implementation details.
Supportive if fiscal cost is reasonable and Treasury guidance is timely.
Sees need for anti-abuse measures and clarity on exclusion thresholds.
Generally favorable: reduces tax burden on individuals, supports service-industry workers and small businesses, and expands a business tax credit.
Sees this as pro-worker, pro-business tax relief that respects private-sector pay practices.
May seek simplification and perennial tax relief rather than temporary measures.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Plausible bipartisan appeal but material revenue cost, missing offsets, and administrative changes make enactment uncertain absent compromise or pay‑fors.
The bill has not accumulated any surfaced votes yet.
Liberals worry about revenue loss and prefer wage-floor solutions.
Plausible bipartisan appeal but material revenue cost, missing offsets, and administrative changes make enactment uncertain absent compromi…
Relative to its intended legislative type, this bill clearly establishes a new tax deduction for qualified tips and extends an employer tax credit to specified beauty services. It integrates those changes into existing…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.