Bill · H.R. 3249· House(119-HR-3249)
Mom and Pop Tax Relief Act
- Introduced
- 5/7/2025
- Last activity
- 5/7/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Gwen Moore
- Cosponsors
- - 7 - 0
- Introduced
- In Committee
What this bill would do
The "Mom and Pop Tax Relief Act" seeks to amend the Internal Revenue Code of 1986 regarding the qualified business income deduction. It proposes to cap the combined qualified business income amount at $25,000. The bill also introduces a new limitation based on the taxpayer's adjusted gross income. These changes include adjustments to how W-2 wages are defined and how taxable income is computed. The legislation includes various conforming amendments to existing tax code sections. These changes are intended to take effect for taxable years beginning after December 31, 2025.
Yes
Does this reduce what the federal government owes?+1
Reducing business deductions may increase federal revenue, thereby helping to reduce the deficit.
Does this make the government pay for what it commits to?+1
The bill could improve fiscal responsibility by increasing tax revenue through reduced deductions.
The opposite· 3 of 9
Does this make it easier to run a small business?-7
The bill limits the deduction available to small businesses, which reduces their overall tax support.
Would business owners be better off under this?-7
The cap on qualified business income significantly limits the tax benefits available to business owners.
Does this cut taxes for small businesses?-6
By capping the deduction at $25,000, the bill significantly reduces the tax relief available to small business owners compared to the previous 20 percent structure.
Who it would affect, and how
Potential Positive Impacts for People
-
Simplified Tax Rules: The bill includes a simplification of the rules regarding loss carryovers by striking existing paragraphs in the tax code. (Section 2(c))
-
Clarified Wage Definitions: The bill updates the definition of W-2 wages to include specific requirements for domestic production gross receipts and filing deadlines with the Social Security Administration. (Section 2(d)(1)(B))
Potential Negative Impacts for People
-
Cap on Business Income Deduction: The bill limits the "combined qualified business income amount" to the lesser of the sum of the taxpayer's qualified business income or $25,000, which removes the previous 20 percent deduction structure. (Section 2(a))
-
New Income Limitations: The bill introduces a reduction to qualified business income based on how much a taxpayer's adjusted gross income exceeds $200,000 for individuals or $400,000 for joint returns. (Section 2(b))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Fiscal Responsibility+1Reduces National Debt+1Improves Small Business Support-7Reduces Small Business Taxes-6Reduces Middle Class Taxes-5Improves Economic Growth-3Increases Wealthy Taxes-3
- Demographic And Interest Groups
- Good For Business Owners-7Good For High Income Households-5Good For High Net Worth Individuals-4Good For Middle Class Households-4
- 5/21/2025
- 1 Cosponsor added.
- 5/19/2025
- 1 Cosponsor added.
- 5/7/2025
- Referred to the House Committee on Ways and Means.
- 5 Cosponsors added.
- Introduced in House
Judy ChuDemocrat · California
Danny DavisDemocrat · Illinois
George LatimerDemocrat · New York
Betty McCollumDemocrat · Minnesota
LaMonica McIverDemocrat · New Jersey
Kristen McDonald RivetDemocrat · Michigan
Nydia VelázquezDemocrat · New York