,i #aaith ,,congress #ast ,session ,h4 ,r4 #dhb ,,in ,,the ,,house ,,of ,,representatives ,january #af1 #bjbe,mr4 ,buchanan 7for himself1 ,mr4 ,donalds1 ,mr4 ,van ,orden1 and ,mr4 ,horsford7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to eliminate the application of the income tax on qualified tips through a deduction allowed to all individual taxpayers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,no ,tax on ,tips ,act4 #b4 ,deduction for qualified tips 7a7 ,in general 7#a7 ,deduction allowed ,part ,,vii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by redesignating section #bbd as section #bbe and by inserting after section #bbc the following new section3 #bbd4 ,qualified tips 7a7 ,in general ,there shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the employer pursuant to section #fjec7;a74 7b7 ,maximum deduction ,the deduction allowed by subsection 7a7 for any taxpayer for the taxable year shall not exceed #be1jjj4 7c7 ,qualified tips ,for purposes of this section-- 7#a7 ,in general ,the term qualified tip means any cash tip received by an individual in the course of such individual's employment in an occupation which traditionally and customarily received tips on or before ,december #ca1 #bjbc1 as provided by the ,secretary4 7#b7 ,exclusion for certain employees ,such term shall not include any amount received by an individual in the course of employment by an employer if such individual had1 for the preceding taxable year1 compensation 7within the meaning of section #dad7q777#d7 from such employer in excess of the amount in effect under section #dad7q77#a77;,b77i74 4 7#b7 ,published list of occupations traditionally receiving tips ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall publish a list of occupations which traditionally and customarily received tips on or before ,december #ca1 #bjbc1 for purposes of section #bbd7;c77#a7 of the ,internal ,revenue ,code of #aihf 7as added by paragraph 7#a774 7#c7 ,conforming amendment ,the table of sections for part ,,vii of subchapter ,b of chapter #a of such ,code is amended by redesignating the item relating to section #bbd as relating to section #bbe and by inserting after the item relating to section #bbc the following new item3 ,sec4 #bbd4 ,qualified tips4 4 7b7 ,deduction allowed to non-,itemizers ,section #fc7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#c71 by striking the period at the end of paragraph 7#d7 and inserting and1 and by adding at the end the following new paragraph3 7#e7 the deduction provided in section #bbd4 4 7c7 ,non-,application of certain limitations for itemizers 7#a7 ,deduction not treated as a miscellaneous itemized deduction ,section #fg7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#aa71 by striking the period at the end of paragraph 7#ab7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#ac7 the deduction under section #bbd 7relating to qualified tips74 4 7#b7 ,deduction not taken into account under overall limitation ,section #fh7;c7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#b71 by striking the period at the end of paragraph 7#c7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#d7 the deduction under section #bbd 7relating to qualified tips74 4 7d7 ,withholding ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall modify the tables and procedures prescribed under section #cdjb7;a7 of the ,internal ,revenue ,code of #aihf to take into account the deduction allowed under section #bbd of such ,code 7as added by this ,act74 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbd4 #c4 ,extension of credit for portion of employer social security taxes paid with respect to employee tips to beauty service establishments 7a7 ,extension of tip credit to beauty service business 7#a7 ,in general ,section #de;,b7b77#b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#b7 ,application only to certain lines of business ,in applying paragraph 7#a7 there shall be taken into account only tips received from customers or clients in connection with the following services3 7,a7 ,the providing1 delivering1 or serving of food or beverages for consumption1 if the tipping of employees delivering or serving food or beverages by customers is customary4 7,b7 ,the providing of beauty services to a customer or client if the tipping of employees providing such services is customary4 4 7#b7 ,beauty service defined ,section #de;,b of such ,code is amended by adding at the end the following new subsection3 7e7 ,beauty service ,for purposes of this section1 the term beauty service means any of the following3 7#a7 ,barbering and hair care4 7#b7 ,nail care4 7#c7 ,esthetics4 7#d7 ,body and spa treatments4 4 7b7 ,credit determined with respect to minimum wage in effect ,section #de;,b7b77#a77;,b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking as in effect on ,january #a1 #bjjg1 and2 and 7#b7 by inserting 1 and in the case of food or beverage establishments1 as in effect on ,january #a1 #bjjg after without regard to section #c7m7 of such ,act4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbd4