HR2621Referred to Committee
REAL AMERICA Act
Introduced
In Committee
3
Passed One Chamber4
Passed Both5
Signed into Law119th
Congress
2025-04-03
Introduced
1
Cosponsors
HR
ⓘType
Sponsor
Steve Cohen
Democrat · TN · Representative
Votes with party: 97.7% (574 recorded votes)
Full profile: /officials/C001068
Source: Congress.gov · FEC
Cosponsors (1)
Members who have signed on to support this bill since introduction. Source: Congress.gov.
1 cosponsor on record at Congress.gov. The named list is syncing into Govwatch and will appear here shortly — view on Congress.gov in the meantime.
Latest Action
The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →
Committee Activity
Currently in
- House Committee on Ways and MeansReferred To · 2025-04-03
Plain-English Summary
Reward Each American’s Labor And Make Every Rich Individual Contribute Again Act or the REAL AMERICA Act 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.) 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.
Plain-English rewrite of the Congressional Research Service summary published on Congress.gov. Cached and reviewed.
Subjects
Taxation
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