Bill 119 HR 482, also known as the "Tip Income Protection Act," aims to amend the Internal Revenue Code of 1986 in order to eliminate the application of income tax on qualified tips. This would be achieved through a deduction allowed to all individual taxpayers. The bill seeks to provide protection for tip income by ensuring that individuals who receive tips as part of their income are not unfairly taxed on this portion of their earnings.
The main purpose of this legislation is to address the issue of taxation on tip income, which has been a point of contention for many individuals in the service industry. By allowing for a deduction on qualified tips, the bill aims to provide relief for those who rely on tips as a significant portion of their income.
In addition to eliminating the income tax on qualified tips, the bill also includes provisions for other purposes. While the specific details of these provisions are not outlined in the summary, it is clear that the overall goal of the legislation is to provide support and protection for individuals who earn tip income.
Overall, Bill 119 HR 482 seeks to address the taxation of tip income by allowing for a deduction on qualified tips for all individual taxpayers. This legislation aims to provide relief and support for individuals in the service industry who rely on tips as a significant source of income.