Senate Passes ‘No Tax on Tips Act’ in Unanimous Vote

Contact Your Elected Officials

The proposal establishes a new tax deduction of up to $25,000 for cash tips.

Lawmakers in the Republican-led Senate on Tuesday passed a proposal to eliminate federal taxes on tips, moving a step closer to fulfilling a campaign promise by President Donald Trump that has drawn support from both sides of the political spectrum.

The measure establishes a new tax deduction of up to $25,000 for tips—whether received in cash, by credit or debit card, or by check—that are earned by employees in occupations that customarily receive tips and are reported to their employers for purposes of withholding payroll taxes.

Senators passed the bipartisan “No Tax on Tips Act” in a unanimous vote, sending the legislation to the House of Representatives.

The measure was introduced by Sen. Ted Cruz (R-Texas) and sponsored by a bipartisan group of senators including two of Nevada’s Democratic senators, Jacky Rosen and Catherine Cortez Masto.

In a statement following the vote, Cruz said the bill will “have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck.”

The Texas lawmaker urged his colleagues in the House to pass the legislation and send it to Trump’s desk to be signed into law.

Under current law, an employee is required to report tips exceeding $20 per month to their employer.

The bill does not apply to employees making more than $160,000 in 2025, a figure that will be adjusted annually to account for inflation, according to the bill.

Tipped workers in the bottom 60 percent of the income distribution would receive an average tax cut of $1,260 if tips were excluded from income taxes, according to the non-partisan organization, the Peter G. Peterson Foundation.

The organization noted that economists at the Budget Lab at Yale and the Tax Foundation each estimate federal revenues would drop by around $110 billion over 10 years if tips are excluded from individual income taxes.

By Katabella Roberts

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Armistice and amnesia  

In case you missed it too, June 25th marked the 75th anniversary of the beginning of the Korean War – the first hot front of the Cold War. 

Candace Owens Gets Sued by Macrons

Candace Owens began a deep dive into the lives of French President Emmanuel Macron, his wife Brigitte, and the story of how they came to be together.

Fluoride ‘Tablets’ For Babies EXPLODE in Popularity Amid Water Fluoridation Rollbacks

Reportedly, NPCs are so distraught that their toddlers won’t be fed a neurotoxin through the public water supply that they’ve resorted to fluoride pills.

ChatGPT Goes Biblical about End Times!

There are some truly outstanding internet content creators, or...

Bangkok Indians: ‘You Are Lucky Man’

In Bangkok, friendly prostitutes outside “massage” shops tell me I’m “so handsome man.” Indian men prowling those streets tell me I’m “lucky man.”

Education Department Probe Finds 5 Virginia School Districts Violated Title IX

Five school districts in No. VA violated Title IX by allowing students to access “intimate, sex-segregated facilities based on subjective ‘gender identity,’”

Washington State Sues to Prevent Trump Admin From Accessing Food Aid Immigration Data

Washington state is suing financial services company Fidelity Information Service to prevent it from sharing food aid data with the federal government.

5 Things to Know About Trump Admin’s Settlement With Columbia University

Under agreement between President Trump and Columbia regarding anti-Semitism, school will pay a $200 million fine to regain federal money.

Trumps America: Welp… that backfired.

The official @TheDemocrats account posted chart with the caption “Trump’s America” — but didn’t seem to notice how their own graph actually works.

Ex-DOJ Officials File Lawsuit Against Bondi Over Terminations

Former DOJ officials filed lawsuit against AG Bondi and the fed. govt, saying they were terminated for work on cases related to Jan. 6 Capitol breach.

Odds of U.S.-EU Trade Deal Are 50–50 Ahead of Tariff Deadline: Trump

President Donald Trump said there’s a 50–50 chance that the United States will finalize a trade deal with the European Union before an Aug. 1 deadline.

Trump Pulls Habba’s Nomination for New Jersey’s Top Prosecutor, Making Her Acting US Attorney

President Trump withdrew his nomination of Alina Habba to serve as NJ’s top federal prosecutor, making her Acting US Attorney.

Trump Says He Wants Musk’s Companies to ‘Thrive Like Never Before’

On Thursday, President Trump said, “I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!”
spot_img

Related Articles