US EditionThings to know about ‘no tax on tips,’ Trump’s tax pledge that’s included in GOP budget bill
- In May 2025, the Senate unanimously passed a bill introducing a tax deduction that exempts tips from federal income taxation for workers nationwide earning less than $160,000.
- This legislation follows President Trump’s 2024 campaign pledge made during a Las Vegas stop to help working-class service employees amid rising living costs.
- Nevada’s two Democratic senators worked alongside Republicans and the Culinary Workers Union to promote legislation benefiting employees in the casino and hospitality industries.
- According to experts, tipped workers who owe federal income taxes could see a tax reduction near $1,800 on average, primarily benefiting those with higher incomes, while critics caution the measure might worsen inequalities and add $40 billion to the deficit by 2028.
- The bill’s adoption could provide moderate relief for some workers and aid labor recruitment, but advocacy groups urge focusing instead on raising the minimum wage to assist the lowest earners.
60 Articles
60 Articles
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.
What Trump's pledge to cut taxes on tips and overtime means in practice as it moves closer to law
On the campaign trail, President Donald Trump sought to win over working-class voters in key swing states with a promise to exempt tips and overtime pay from federal income taxes.
Experts debate 'no tax on tips' bill's impact in WNY
BUFFALO, N.Y. (WIVB) — The bipartisan “no tax on tips” bill recently cleared the U.S. Senate with strong support, promising to eliminate federal income taxes on tipped earnings for qualifying workers. As the legislation heads to the House of Representatives, local experts are raising questions about how much the change will actually benefit workers in regions like Western New York. WIVB News 4 spoke with Fred Floss, an economics professor at the…
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