119th Congress Taxation
H.R. 2621: REAL AMERICA Act
Introduced
- Introduced (completed)
- Passed House (not reached)
- Passed Senate (not reached)
- To the President (not reached)
- Became law (not reached)
Summary
This bill establishes new federal tax deductions for cash tips and qualified overtime compensation, excludes Social Security and Tier I railroad retirement benefits from gross income for federal tax purposes, and modifies the taxation of carried interest.
The bill allows individuals with a modified adjusted gross income (MAGI) of $450,000 or less ($900,000 or less for joint filers) to claim a federal tax deduction for (1) cash tips, and (2) qualified overtime compensation.
The bill excludes all Social Security and Tier I railroad retirement benefits from gross income. (Currently, a portion of such benefits is included in gross income, depending on the beneficiary’s MAGI.)
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Under the bill, net capital gain and loss attributable to carried interest is recharacterized as ordinary and, thus, taxed at ordinary income tax rates. (Carried interest is currently taxed at capital gains tax rates, which may be lower than applicable ordinary income tax rates. Carried interest is the share of profits received by the general partner in a private equity firm or hedge fund from the assets managed by that general partner.)
The bill also
- treats as ordinary the money (or fair market value of property) received by a partner in a sale or exchange of carried interest,
- requires distributions of carried interest by a partnership in exchange for interest in other partnership property to be recognized ordinary gain, and
- imposes self-employment taxes on carried interest income.
Written by the Congressional Research Service, Library of Congress.
Roll calls
No roll call votes have been held on this bill.
Amendments
No amendments were offered to this bill.
Cosponsors
- André Carson D-INOriginal
Who scored on this bill
No member has earned points from it yet.
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Introductions and cosponsorships count toward weekly caps and show no points.
Other bills by Steve Cohen
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- H.R. 144: Tennessee Valley Authority Salary Transparency Act
- H.R. 7224: To amend the Public Health Service Act to reauthorize the Stop, Observe, Ask, and Respond to Health and Wellness Training Program.
- H.R. 4693: Tennessee Valley Authority Salary Transparency Act
- H.R. 3315: National Guard and Reservists Debt Relief Extension Act of 2023
History
- Introduced in the House by Steve Cohen.
Show the full action history (2 actions)
- Introduced in House
- Referred to the House Committee on Ways and Means.