Senate Passes Bill to Cut Taxes on Tips: Here's Everything You Need to Know
- The U.S. Senate unanimously approved the No Tax on Tips Act this week, advancing the proposal to the House for consideration.
- This legislation follows President Trump’s 2024 campaign pledge to eliminate federal income tax on tips, a promise aimed at helping working-class service employees.
- The bill would create a tax deduction up to $25,000 for eligible workers making less than $160,000 in 2025, applying to traditionally tipped occupations including service and personal care roles.
- Congressional budget analysts estimate the deduction would add $40 billion to the deficit by 2028, while advocacy groups caution that it might primarily benefit higher-income tipped employees.
- While the bill enjoys bipartisan and employer support, some critics argue it distracts from efforts to raise the minimum wage and may inadequately assist the lowest-earning service workers.
125 Articles
125 Articles
‘No Tax On Tips’ Pledge Advances: What CA Workers Should Know
'No Tax On Tips' Pledge Advances: What CA Workers Should Know - Across California, CA - In a unanimous vote, the Senate approved the idea to create a new tax deduction eliminating federal income taxes on tips.
Senate Unanimously Passes Bill Granting $25,000 Tax Break for Tipped Workers - Asian Journal News
In a rare display of bipartisan unity, the U.S. Senate on Tuesday unanimously approved the “No Tax on Tips Act,” a bill that would exempt up to $25,000 in annual cash tips from federal income taxes for workers in traditionally tipped occupations. The legislation marks a significant shift in federal tax policy affecting millions of service industry workers. The measure…
‘No tax on tips’ bill unanimously passes US Senate: What does it mean?
In a display of bipartisan unity, the U.S. Senate unanimously approved a "no tax on tips" bill, which would allow tipped workers earning up to $160,000 annually to deduct up to $25,000 in reported tips from their federal income taxes.
Hotels Are Pushing a New Way to Tip—And Guests Have Strong Opinions About It
You walk into your hotel room, throw your bags on the bed, and head for the thermostat because it’s either set to “arctic tundra” or “hell’s sauna.” Then you spot it—right next to the remote control, there’s a new tech-enhanced sign that says: “Tipping just got easier! Should you wish to show appreciation to our hardworking room attendants team.”One Reddit user spotted this very sign at a Courtyard by Marriott and was less than thrilled. “Are we…
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