Referred to the House Committee on Ways and Means.
The Tip Tax Termination Act amends the Internal Revenue Code to exclude up to $20,000 of "eligible tips" from gross income for individuals for tax years from 2025 through 2029. Eligible tips cover work that generally relies on tips, such as cosmetology, hospitality, and food service.
Left emphasizes worker income and CTC/EIC benefits
Relative to its intended legislative type, this bill is a straightforward statutory insertion creating a temporary exclusion for certain tips with basic structural elements (amount cap, eligible categories, denial-of-double-benefit, sunset, clerical amendments, and a withholding-direction).
The Tip Tax Termination Act amends the Internal Revenue Code to exclude up to $20,000 of "eligible tips" from gross income for individuals for tax years from 2025 through 2029.
Eligible tips cover work that generally relies on tips, such as cosmetology, hospitality, and food service.
The excluded tip amount is disallowed for most deductions and credits, but is counted for the child tax credit and the earned income credit.
Narrow, non-ideological tax break helps chances, but fiscal cost, lack of offsets, and Senate hurdles lower odds absent broader package inclusion.
Relative to its intended legislative type, this bill is a straightforward statutory insertion creating a temporary exclusion for certain tips with basic structural elements (amount cap, eligible categories, denial-of-double-benefit, sunset, clerical amendments, and a withholding-direction). It is specific enough to establish the core policy change but leaves many practical and fiscal details to implementing guidance or other processes.
Left emphasizes worker income and CTC/EIC benefits
These are examples from the analysis, not a ranked list of the most-affected groups.
Left emphasizes worker income and CTC/EIC benefits
Likely broadly supportive because the bill raises after-tax income for many low-paid tipped workers and preserves CTC/EIC eligibility.
Would prefer permanence, stronger safeguards, and clarity on payroll tax treatment and enforcement to protect workers.
Cautiously receptive: supports targeted tax relief for lower-income workers but worries about budgetary cost, administrative complexity, and benefiting some higher-earning tipped workers.
Would want offsets or limited scope and data collection to evaluate effects.
Mixed to skeptical: favors tax relief in principle but opposes special carve-outs that shrink the tax base and complicate rules.
Concerned about fraud, higher-income tipped workers receiving the benefit, and insufficient fiscal offsets.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Narrow, non-ideological tax break helps chances, but fiscal cost, lack of offsets, and Senate hurdles lower odds absent broader package inclusion.
The bill has not accumulated any surfaced votes yet.
Left emphasizes worker income and CTC/EIC benefits
Narrow, non-ideological tax break helps chances, but fiscal cost, lack of offsets, and Senate hurdles lower odds absent broader package inc…
Relative to its intended legislative type, this bill is a straightforward statutory insertion creating a temporary exclusion for certain tips with basic structural elements (amount cap, eligible categories, denial-of-do…
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