Likely helped
- No clear beneficiaries surfaced yet.
H.R. 558 (119th)Bill Overview
Tip Tax Termination Act
Taxation|Taxation
Current stageCommittee
Referred to the House Committee on Ways and Means.
Introduced
Committee
Floor
President
Law
01 · The brief
Plain-English summaryWhat this bill actually does
<p><strong>Tip Tax Termination Act </strong></p><p>This bill excludes from gross income for federal tax purposes up to $20,000 of eligible tips received during the tax year. The bill also requires the Internal Revenue Service to modify the tables and procedures used to withhold federal income tax from wages to take into account eligible tips excluded from gross income. </p><p>The bill defines <em>eligible tips</em> as amounts received while performing services in a position that generally relies on tips as part of wages, including cosmetology, hospitality, and food service.</p><p>Further, under the bill, the amount of eligible tips excluded from gross income must not be included in determining federal tax deductions or credits, except for purposes of calculating the child tax credit and earned income tax credit.</p><p>Finally, the exclusion from gross income only applies to eligible tips received before 2030. </p>
Why people may split
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
Watch point
The next hurdle is converting committee movement into a floor coalition.
<p><strong>Tip Tax Termination Act </strong></p><p>This bill excludes from gross income for federal tax purposes up to $20,000 of eligible tips received during the tax year. The bill also requires the Internal Revenue Service to modify the tables and procedures used to withhold federal income tax from wages to take into account eligible tips excluded from gross income. </p><p>The bill defines <em>eligible tips</em> as amounts received while performing services in a position that generally relies on tips as part of wages, including cosmetology, hospitality, and food service.</p><p>Further, under the bill, the amount of eligible tips excluded from gross income must not be included in determining federal tax deductions or credits, except for purposes of calculating the child tax credit and earned income tax credit.</p><p>Finally, the exclusion from gross income only applies to eligible tips received before 2030. </p>
Passage38/100
This bill has moved beyond introduction, but committee and floor dynamics still determine whether it can build durable support.
CredibilityPartial
How solid the drafting looks.
Contention62/100
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
02 · What it does
Who stands to gain, and who may push back.
Likely benefits vs burdens0% / 100%
Likely helpedLikely burdened
These are examples from the analysis, not a ranked list of the most-affected groups.
Likely burdened
- No clear downsides surfaced yet.
03 · Why people split
Why the argument around this bill splits.
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
Progressive—
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
Centrist—
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
Conservative—
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
04 · Can it pass?
The path through Congress.
Introduced
Reached or meaningfully advanced
Committee
Reached or meaningfully advanced
Floor
Still ahead
President
Still ahead
Law
Still ahead
Passage likelihood38/100
This bill has moved beyond introduction, but committee and floor dynamics still determine whether it can build durable support.
Why this could stall
- The next hurdle is converting committee movement into a floor coalition.
05 · Recent votes
Recent votes on the bill.
No vote history yet
The bill has not accumulated any surfaced votes yet.
06 · Go deeper
Go deeper than the headline read.
Included on this page
The main political fault lines are not fully surfaced yet, so coalition durability is still unclear.
This bill has moved beyond introduction, but committee and floor dynamics still determine whether it can build durable support.
Unlocked analysis
Pro readers get the full perspective split, passage barriers, legislative design review, stakeholder impact map, and lens-based policy tradeoff analysis for Tip Tax Termination Act.
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.
Perspective breakdownsPassage barriersLegislative design reviewStakeholder impact map
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