US EditionSenate Passes Bill to Cut Taxes on Tips: Here's Everything You Need to Know
- The U.S. Senate unanimously passed the No Tax on Tips Act this week, aiming to eliminate federal income taxes on cash tips for eligible workers.
- The bill, introduced in January, responds to President Trump's campaign promise in Las Vegas to end taxation on tips for workers earning under $160,000.
- The legislation creates a deduction of up to $25,000 annually on tips and expands business tax credits to cover payroll taxes on tips in several service sectors.
- Congressional budget analysts estimate that the provision will add $40 billion to the federal deficit through 2028, while experts caution that the tax benefits are likely to disproportionately assist higher-earning tipped workers rather than the lowest-income service employees.
- The bill now awaits House approval before it reaches the president's desk, with supporters citing relief for service workers and critics urging attention to raising the minimum wage.
111 Articles
111 Articles
Senate Democrats Join Republicans To Approve Major Trump Campaign Promise
By Adam Pack via Daily Caller News Foundation | May 20, 2025 The Senate passed bipartisan legislation to eliminate tax on tips through unanimous consent in a surprise move Tuesday afternoon. Republican Texas Sen. Ted Cruz’s No Taxes On Tips Act would exempt tips from taxation under the federal income tax. The legislation’s passage delivers on a central pledge of President Donald Trump’s 2024 presidential campaign to provide tax relief to tipped …
Wyoming Service Workers Optimistic Over Senate Passage Of No Tax On Tips Bill
In a surprise move, the U.S. Senate passed the No Tax on Tips bill unanimously. The reaction from Wyoming service employees ranged from cautious optimism to elation. “The blue-collar worker, what’s left of us, needs their tips to help ends meet,” one barber said.
U.S. Senate Unanimously Passes Trump's No Tax on Tips Measure
Democrats and Republicans united in the U.S. Senate for the first time in who knows how long to pass Donald Trump’s no tax on tips plan on Tuesday. The bill would allow those who earn tips at work to claim a 100% deduction on their tips, Breitbart News reported. The legislation also includes a renewal […] The post U.S. Senate Unanimously Passes Trump’s No Tax on Tips Measure appeared first on The Lid.
Watauga Democrat
No Tax on Tips bill on its way to U.S. House after Senate passage
(The Center Square) - The No Tax on Tips Act is headed to the House for a vote after bipartisan support.
Daily Local News
Things to know about ‘no tax on tips,’ Trump’s tax pledge that’s included in GOP budget bill
By WYATTE GRANTHAM-PHILIPS and JONATHAN J. COOPER, Associated Press NEW YORK (AP) — President Donald Trump’s “no tax on tips” pledge became a catchphrase for his 2024 campaign. Now it’s inching closer to reality. The idea is firmly planted in the sprawling tax cuts package Republicans are hashing out in the House and aiming to pass in the coming days. And in a surprise move, the Senate voted this week to unanimously approve the idea. The proposa…
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