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PALMETTO, Fla. — In a significant move, the U.S. Senate unanimously approved President Donald Trump’s initiative to eliminate taxes on tips. This proposal aims to exempt a portion of workers’ tips from federal taxation, bolstering the earnings of individuals in tip-dependent professions.
What You Need To Know
- The U.S. Senate unanimously passed Trump’s campaign promise of “No Tax on Tips”
- A new tax deduction of up to $25,000 for tips will be established, along with an expansion of the business tax credit for employers.
- The House still needs to vote on their version of the tax break bill.
- Cash tips from jobs where tipping is customary and reported for payroll tax withholding are eligible for the deduction under the Senate’s bill.
Hailee Ryan, a barista at Tenth Street Coffee, has been in the job for nearly two years and highlights the significance of tips in her overall income. She stated, “Tips are definitely a very big part of my check. I work full time — five days a week — so tips are crucial for me.”
Having developed a loyal customer base, Ryan frequently receives generous tips. “I love our customers here. I love our regulars. They’re always so generous with their tips, and they never skimp out,” she remarked.
The Senate’s version of the bill introduces a tax deduction specifically for cash tips, capped at $25,000, and expands the credit for employers. However, it remains to be seen if the House will support their own version of this tax break. Should the House agree, any discrepancies between their bill and the Senate’s will need to be worked out and re-passed by both chambers.
Ryan, though neutral on the legislative changes, is eager for more details regarding their potential financial implications: “What’s it going to look like when we get that back? Is it going to affect us? Are we going to owe more? Are we going to owe less? Are we going to get more?”
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Article original publish date: 2025-05-21 06:48:00
Article source: www.baynews9.com
Read the full story at the original source: www.baynews9.com
