US EditionThings to know about ‘no tax on tips,’ Trump’s tax pledge that’s included in GOP budget bill
- President Donald Trump pledged 'no tax on tips' during his 2024 campaign, and the Senate unanimously approved the proposal this week.
- This pledge addresses challenges faced by working-class individuals and proposes a new deduction that would exempt tips from federal income taxation for workers earning less than $160,000 in 2025.
- The provision has bipartisan support, backing from employers and unions, but critics say it mainly benefits higher-income tipped workers and has high government costs.
- Congressional analysts project a $40 billion deficit increase through 2028, while an advocacy group estimates $120 billion over a decade if permanent.
- The bill could provide moderate relief to some workers and aid restaurant recruitment, but opponents argue it distracts from raising the minimum wage and helping the neediest.
109 Articles
109 Articles
Valladares applauds US Senate, seeks state passage of ‘no tax on tips bill’
News release Sen. Suzette Martinez Valladares, R-Acton, applauded members of the U.S. Senate for the bipartisan, unanimous passage of the federal “No Tax on Tips Act,” while also pushing for passage of her similar bill winding its way through the state legislative process. The federal bill, which would create a tax deduction worth up to $25,000 for tips, passed the U.S. Senate with no opposition and now moves to the U.S. House for considerati…
The spokesman-Review
BizTocExempting tips from taxes could hurt employees, critics say
The bipartisan push to eliminate taxes on tips has been touted as a way to help people keep more of their hard-earned money. But some economists warn that it could encourage employers to reduce hourly wages.
California ‘No Tax On Tips’ Bill Halted in Senate Committee – California Globe
A bill that would create a California state income tax deduction for tips was held in the Senate Appropriations Committee over the weekend, being one of over 400 pieces of legislation being sent to the Suspense File. Senate Bill 17, authored by Senator Rosilicie Ochoa Bogh (R-Yucaipa) and Senator Suzette Martinez Valladares (R-Santa Clarita), would allow a deduction in determining adjusted gross income for an amount equal to the qualified tips r…
No Tax on Tips in the Big Beautiful Bill Will Help Millions of Americans - Americans for Tax Reform
The “No Tax on Tips” provision is one of the many tax cuts in the Big Beautiful Bill that would deliver direct tax relief to millions of working Americans. The chart below shows how many people stand to benefit. See Also: List of Tax Cuts in the Big Beautiful Bill
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