PlainBillCongress, translated.Legislation. Context. Public interest.Congressional Research Service
Version 00 · Introduced in House · Apr 3, 2025
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.
Showing the opening paragraphs of the official summary.
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.
People & committees
Rep. Cohen, Steve [D-TN-9] · D–TN
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We currently store references to these documents.
Source last updated: Aug 27, 2026. Consult Congress.gov for the current record.
AI Conversation Starters
Choose a perspective, copy a prompt, and paste it into your preferred AI. Each prompt includes the bill version and available official source links, and asks for counterarguments as well as supporting evidence.
Analyze H.R.2621 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
Examine H.R.2621 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.
Examine H.R.2621 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.
Examine H.R.2621 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.