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In a strange move, the Senate quickly and unanimously passed the "No Tax on Tips Act" on Tuesday, giving its official stamp of approval to an idea that has gained traction since trumpster campaigned on it in 2024.To be fair, Cruz and TWO dems (Jacky Rosen and Catherine Cortez Masto) were sponsors of the bill. That shows me the moderate dems are willing to actually work for their constituents. This is the way a Republic is supposed to work.
I do want to say, that without the dems supporting this, it could not happen the way it did. In this case, everyone put down their bullshit and just got something done for the working class.
The legislation would create a new tax deduction worth up to $25,000 for tips, limited to cash tips that that workers report to employers for withholding purposes on payroll taxes.
The tax break is also restricted to employees who earn earn $160,000 or less in 2025, an amount that will rise with inflation in upcoming years.
This is a huge boom for the service industry, who routinely work at sub-minimum wages when employers "assume" a 15-20% tip on "everything ordered." With both of us having worked in the service industry, my wife and I "overtip" in cash anyway, leaving the person the ability to claim (or not) the tip. So now more than ever, I encourage over-tipping for those that can, and let these folks take home more.
Now, we'll see what the house does. That's a crapshoot.
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