REAL AMERICA Act

This proposal would change federal taxes in two main ways: it would create a deduction for cash tips and stop counting Social Security benefits as taxable income, according to the bill text. In plain terms, tipped workers could lower the income they’re taxed on, and people who receive Social Security would no longer owe federal income tax on those benefits.

• Who is affected: workers who get cash tips; people who receive Social Security benefits.
• What changes: new tax deduction tied to cash tips; Social Security benefits removed from taxable income.
• When: the provided text does not state effective dates.