Passed the Senate: Yesterday, the Senate passed the No Tax on Tips Act 100–0, which "creates a federal income tax deduction of up to $25,000 a year for certain types of cash tips for eligible employees," per The Washington Post. ("Cash tips" include tips given not just in cash but also via credit and debit cards.) This applies to employees earning $160,000 or less annually.
Waiters, bartenders, delivery drivers, strippers, taxi drivers, and many others stand to benefit from this. But isn't the obvious outcome customers simply tipping less, realizing that the workers they were tipping now get to keep more of what they earn (if they were reporting it as taxable income at all in the first place)?
No Tax on Tips Act has passed the Senate
Want to give both you and your buddy a $25,000 deduction for the year? Both of you sign up to deliver on DoorDash, order a Starbucks latte that your friend delivers for you, and generously thank each other with a $25k tip! pic.twitter.com/lLjlSi5wtw
