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Representative Darin LaHood

Representing the 18th District of Illinois

LaHood and DelBene’s Bill to Empower Small Business Receives Strong Industry Support 

December 11, 2019
Press Release

WASHINGTON, D.C. – Congressman Darin LaHood (R-IL) and Congresswoman Suzan DelBene (D-WA) are pleased to announce overwhelming industry support for their bipartisan legislation – the Small Business Tax Fairness and Compliance Simplification Act (H.R. 1349). 

In a letter over, 3,300 salon owners and beauty professionals from across the United States expressed their support for H.R. 1349, which would reduce compliance burdens for tens of thousands of small businesses in the beauty industry. 

This bicameral, bipartisan bill would extend the tax code’s Federal Insurance Contributions Act (FICA) tax tip credit — which is currently available only to the foodservice industry — to the tens of thousands of employer-based beauty service establishments where tipping is also customary.  The FICA tax tip credit is part of an integrated compliance system that has been effective in ensuring the accurate reporting of tip income and reducing the tax gap.  The credit acts as a reimbursement for the costs employers incur in accounting for tip income.  By reducing the tax burdens for tipped employees as well as improving reporting of tip income, H.R. 1349 would provide equitable treatment to the beauty industry allowing them to support their employees and grow their businesses.

“I’m proud that our bipartisan, bicameral legislation has such strong support from the beauty and hair care industry, including right here in the 18th District,” said LaHood. “In an industry where most businesses are owned and operated by women and minorities, our bill will level the playing field and provide direct relief to millions of beauty care professionals who rely on tips. Our bill is commonsense, and I’ll continue to work to see it signed into law.”

“I am honored to have the support of beauty industry professionals for this commonsense, bipartisan solution to individuals in the hair care and beauty industry. Employees and employers in this industry – who are disproportionately women and minorities – rely on tips to support themselves and their families,” said DelBene. This legislation would ensure that they receive equitable treatment under the tax code and a fairer, simpler approach to tax administration.”  

“In 2018, Five Senses Spa, Salon & Barbershop guests showed their appreciation to our service providers with gratuities totaling more than $170,000.  Extending the FICA Tip Tax credit will allow me to expand benefits for my staff, offset rising medical costs, and bolster my business operation. This bill will level the playing for myself and thousands of other business owners around the country,” said Paola Hinton, Owner of Five Senses Spa, Salon & Barbershop in Peoria, Illinois.

The bill text can be found HERE. DelBene and LaHood first introduced this legislation during the 115th Congress. It was reintroduced in February 2019.