Summary of Bill HR 558
Bill 119 HR 558, also known as the "Tip Income Protection Act," aims to amend the Internal Revenue Code of 1986 to exempt certain tips from being subject to income taxes for a period of 5 years. This bill is designed to provide relief to workers in the service industry who rely heavily on tips as part of their income.
The bill specifies that tips received by employees in the service industry, such as waiters, bartenders, and other tipped employees, will not be included in their taxable income for a period of 5 years. This means that these workers will not have to pay income taxes on the tips they receive during this time frame.
The goal of this legislation is to provide financial relief to workers in the service industry who have been hit hard by the economic impacts of the COVID-19 pandemic. By exempting certain tips from income taxes, the bill aims to put more money in the pockets of these workers and help stimulate economic growth in the service industry.
Overall, Bill 119 HR 558 seeks to support workers in the service industry by providing them with temporary tax relief on their tip income. This non-partisan legislation aims to address the financial challenges faced by these workers and help them recover from the economic hardships brought on by the pandemic.