Bills · HR 2621
IN COMMITTEE· 119TH CONGRESS
House BillHR 2621Taxation
REAL AMERICA Act
INTRO APR 3· LAST ACTION APR 3
READING
38MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it could directly increase the take-home pay and disposable income for millions of working Americans and retirees. For those who rely on tips or overtime pay, being able to deduct these earnings from their taxes would mean they keep more of their hard-earned money, which could help with daily expenses or saving. For seniors, making Social Security benefits completely tax-free would provide substantial financial relief, especially for those whose benefits are currently taxed due to other income sources.
If this bill becomes law, it would represent a significant change in federal tax policy, reducing the tax burden on specific income streams and impacting the federal budget. If it does not pass, current tax rules would remain in place, meaning taxes would continue to be collected on a portion of Social Security benefits, reported cash tips, and qualifying overtime pay, depending on individual income levels.
KEY PROVISIONS
5AI-extractedPROVISION 01
Allows taxpayers to deduct the amount of reported cash tips from their taxable income, with an income limit of $450,000 for individuals ($900,000 for joint filers).
This reduces the tax burden on tipped workers, allowing them to keep more of their earnings.
PROVISION 02
Repeals the current law that includes a portion of Social Security benefits in gross income for tax purposes, making all Social Security benefits tax-free.
This increases the net income of Social Security recipients, particularly seniors, by removing a tax liability.
PROVISION 03
Appropriates money from the Treasury to Social Security and Railroad Retirement Trust Funds to cover any revenue lost due to the repeal of Social Security benefit taxation.
This ensures the financial stability of these trust funds is not negatively affected by the tax change.
PROVISION 04
Establishes a deduction for 'qualified overtime compensation' (extra pay for hours worked beyond regular time as per federal law), subject to the same income limits ($450,000/$900,000) and requiring employers to report this on W-2 forms.
This provides tax relief for workers earning overtime, allowing them to retain more of their extra earnings.
PROVISION 05
Begins to modify how partnership interests transferred in connection with services are valued for tax purposes, specifically stating that the fair market value is based on what a partner would receive if the partnership sold all its assets.
This could change the tax implications for individuals who receive ownership stakes in partnerships as compensation for their work.
SPONSORSHIP
1 + 1
D· Tennessee
YRS IN OFFICE
19
BILLS LED
58
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 1 REP 0 IND 0
ACTION TIMELINE
2 EVENTSAPR 3
Introduced in House
APR 3
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 2621
Congress119th
StatusIn Committee
IntroducedApr 3, 2025
Last actionApr 3, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED APR 3, 2025
House BillHR 2621Taxation
REAL AMERICA Act
INTRODUCED APR 3, 2025· LAST ACTION APR 3, 2025
PASSAGE CHANCES
—%
READING
38 min
COSPONSORS
1
COMPLEXITY
Moderate
