H.R. 558, also known as the “Tip Tax Termination Act,” proposes changes to the Internal Revenue Code of 1986 that would exempt certain tipped wages from being counted as taxable income for a period of five years. Specifically, this bill would allow individuals to exclude up to $20,000 in...
Simple Explanation
The "Tip Tax Termination Act" wants to give a special break to workers who get tips, like waiters and hairdressers, by not making them pay taxes on up to $20,000 in tips for five years. This means they can keep more of their money when paying taxes, helping them save and take care of their families.