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A bill to amend the Internal Revenue Code of 1986 to eliminate the application of the income tax on cash tips through a deduction allowed to all individual taxpayers.

7/12/2024, 10:56 AM

Summary of Bill S 4621

Bill 118 s 4621, also known as the "Tip Income Protection Act," aims to amend the Internal Revenue Code of 1986 in order to eliminate the income tax on cash tips. The bill proposes to achieve this by allowing all individual taxpayers to deduct their cash tips from their taxable income.

The main goal of this legislation is to provide relief to workers in industries where tipping is common, such as restaurants and bars. By allowing individuals to deduct their cash tips from their taxable income, the bill seeks to ensure that these workers are not unfairly taxed on income that is often not accurately reported.

If passed, the Tip Income Protection Act would provide a significant benefit to workers who rely on tips as a substantial portion of their income. By eliminating the income tax on cash tips, the bill aims to provide these workers with greater financial security and recognition for their hard work. Overall, the Tip Income Protection Act is a non-partisan effort to address a specific issue related to income taxation and provide relief to workers who rely on tips for their livelihood. It will be interesting to see how this legislation progresses through Congress and whether it ultimately becomes law.

Current Status of Bill S 4621

Bill S 4621 is currently in the status of Bill Introduced since June 20, 2024. Bill S 4621 was introduced during Congress 118 and was introduced to the Senate on June 20, 2024.  Bill S 4621's most recent activity was Read twice and referred to the Committee on Finance. as of June 20, 2024

Bipartisan Support of Bill S 4621

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
14
Democrat Cosponsors
4
Republican Cosponsors
10
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill S 4621

Primary Policy Focus

Alternate Title(s) of Bill S 4621

A bill to amend the Internal Revenue Code of 1986 to eliminate the application of the income tax on cash tips through a deduction allowed to all individual taxpayers.
A bill to amend the Internal Revenue Code of 1986 to eliminate the application of the income tax on cash tips through a deduction allowed to all individual taxpayers.

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