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Things to know about ‘no tax on tips,’ Trump’s tax pledge that’s included in GOP budget bill
- President Donald Trump pledged a 'no tax on tips' policy during his 2024 campaign, and the Senate unanimously approved the idea this week.
- The proposal introduces a tax benefit that exempts workers earning under $160,000 in 2025 from paying federal income taxes on their reported tips in traditionally tipped occupations.
- Supporters include the public, bipartisan lawmakers, employers, and Nevada senators who, alongside unions, pushed the legislation as relief for working-class service workers.
- Experts and advocacy groups caution that the tax break predominantly favors higher-earning tipped employees and may add $40 billion to the federal deficit through 2028, while critics contend it fails to adequately support lower-income workers.
- The legislation's passage suggests bipartisan support for tax relief in the service sector, though debates continue over its cost and effectiveness for the lowest-income workers.
76 Articles
76 Articles
What "No Taxes on Tips" could mean in Montana
Tipped workers in Montana have only had to pay state income taxes on their tips since last year. Now, if Congress approves one of the federal bills pushing for a policy of No Taxes on Tips, that change will go right back to the way it was before 2024.This week, two separate proposals moved forward in Congress that would implement President Donald Trumps campaign promise to exempt workers tips from income tax. In their current form, they would ap…
What will no taxes on tips cost in foregone tax revenue?
A key element of the tax-cut package that the Trump administration and congressional Republicans are working to pass got approved by the Senate as a standalone measure, though it carries a significant cost.The Senate unexpectedly passed the No Tax on Tips Act late Tuesday when Sen. Jack Rosen, D-Nev., spoke in favor of the bill, which Sen. Ted Cruz, R-Texas., introduced earlier this year with Rosen as an original co-sponsor. Rosen asked for unan…
Central Maine News
Things to know about ‘no tax on tips,’ Trump’s tax pledge that’s in the Republican budget bill
The proposal has widespread support from the public, lawmakers in both parties and employers who believe such a law will bring relief to the working class.
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