US Senate Passes "No" Tax on Tips Legislation Unanimously
The legislation is expected to provide significant relief to millions of Americans, particularly those in blue-collar jobs who rely on tips as a major source of income. With its unanimous passage in the Senate, the bill is now one step closer to becoming law, although it still faces significant hurdles in the House and opposition from Democrats.
The US Senate has passed the "No Tax on Tips" legislation with a unanimous vote of 100-0, aiming to exempt tips from federal income tax and allow taxpayers to claim a 100% deduction for tipped wages, which is expected to benefit millions of Americans, particularly those in blue-collar jobs.
The legislation, which has bipartisan support, is a follow-up to the 2017 tax cuts and is expected to provide significant relief to taxpayers who rely on tips as a major source of income. US Senator Ted Cruz, a key proponent of the bill, has consistently prioritized tax cuts and job access, and this legislation is a major step forward in achieving those goals.
The bill now heads to the House for further consideration, where it will be combined with other legislation aimed at advancing President Trump's domestic agenda. House Republicans have released an updated version of their massive bill, which includes extending the 2017 Trump tax cuts, increasing the child tax credit, and lifting the state and local tax deduction (SALT) cap, among other provisions.
While the bill aims to satisfy competing demands from fiscal hawks and blue state Republicans, it faces opposition from Democrats, who are expected to vote against it in unison. House Speaker Mike Johnson is optimistic about passing the bill by Thursday, but it will require nearly unanimous support from Republicans.
The passage of the "No Tax on Tips" legislation is a significant development in the US tax landscape, and its impact will be closely watched in the coming months. As the bill moves forward, it is likely to face intense scrutiny and debate, particularly with regards to its potential impact on the federal budget and the economy as a whole.