,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #eeh  ,,in ,,the ,,house ,,of   
,,representatives  ,january #bj1        
#bjbe,mr4 ,bacon 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 provide that certain 
tips shall not be subject to income     
taxes for a period of #e years4  #a4    
,short title ,this ,act may be cited as 
the ,tip ,tax ,termination ,act4  #b4   
,exclusion from gross income of certain 
tipped wages  7a7 ,in general ,part     
,,iii of subchapter ,b of chapter #a of 
the ,internal ,revenue ,code of #aihf is
 amended by inserting after section     
#aci;,i the following new section3      
#aci;,j4 ,certain tipped wages  7a7 ,in 
general ,gross income shall not include 
so much of the eligible tips received by
 an individual during the taxable year  
as does not exceed #bj1jjj4  7b7        
,eligible tips ,for purposes of this    
section1 the term eligible tips means   

amounts received while performing       
services which constitute employment in 
a position which generally relies on    
tips as part of wages1 including        
cosmetology1 hospitality1 and food      
service4  7c7 ,denial of double benefit 
7#a7 ,in general ,except as provided in 
paragraph 7#b71 any amount which is     
excluded from gross income under this   
section shall not be taken into account 
in determining any deduction or credit  
under this chapter4  7#b7 ,exception for
 child tax credit2 earned income credit 
,the amount excluded from gross income  
under this section shall be taken into  
account for purposes of determining the 
credits under sections #bd and #cb4  7d7
 ,termination ,this section shall not   
apply to tips received after ,december  
#ca1 #bjbi4  4  7b7 ,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 amounts excludible from gross   
income under section #aci;,j of such    
,code 7as added by this ,act74  7c7     
,clerical amendment ,the table of       
sections for part ,,iii of subchapter ,b
 of chapter #a of such ,code is amended 
by inserting after the item relating to 
section #aci;,i the following new item3 
,sec4 #aci;,j4 ,certain tipped wages4  4
  7d7 ,effective date ,the amendments   
made by this section shall apply to     
amounts received after ,december #ca1   
#bjbd4