Senate Passes No Tax on Tips Act
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The US Senate unanimously passed the No Tax on Tips Act, sponsored by Senators Ted Cruz and Jacky Rosen. The bill provides a tax deduction of up to $25,000 for reported cash tips, with a salary cap of $160,000. While gaining bipartisan support and endorsed by both Trump and Harris during the 2024 election, the legislation faces criticism from economists and labor advocates who worry it could incentivize tipped work, undermine pay increases, and only benefit a small percentage of low-wage earners. The bill now moves to the House.











