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Tax Relief for Workers and Changes for Investment Managers

This act introduces new tax deductions for cash tips and overtime pay, and eliminates the taxation of social security benefits. Concurrently, it modifies the taxation rules for income from investment management services, potentially impacting high-income individuals in this sector.
Key points
Allows tax deductions for cash tips and qualified overtime compensation, potentially reducing tax burdens for many workers.
Repeals the inclusion of social security benefits in gross income, meaning pensions and benefits will no longer be taxed.
Changes how income from investment management services (known as 'carried interest') is taxed, potentially increasing tax liabilities for high-income individuals in this field.
Introduces penalties for underpayments related to the new investment management services tax rules.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_2621
Sponsor: Rep. Cohen, Steve [D-TN-9]
Process start date: 2025-04-03
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

REAL AMERICA Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_2621.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-04-03.

What are the main provisions?

Key points include:

  • Allows tax deductions for cash tips and qualified overtime compensation, potentially reducing tax burdens for many workers.
  • Repeals the inclusion of social security benefits in gross income, meaning pensions and benefits will no longer be taxed.
  • Changes how income from investment management services (known as 'carried interest') is taxed, potentially increasing tax liabilities for high-income individuals in this field.
  • Introduces penalties for underpayments related to the new investment management services tax rules.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Cohen, Steve [D-TN-9].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Labor Economy