US Senate passes ‘no tax on tips’ bill in unanimous vote
US Senate passes ‘no tax on tips’ bill in unanimous vote
US Senate passes ‘no tax on tips’ bill in unanimous vote
Bipartisan bill to created tax deduction of up to $25,000 now goes to House but experts have criticized measure
The US Senate passed the No Tax on Tips Act on Tuesday after the Nevada senator Jacky Rosen brought the bill up for a unanimous consent request.
The bipartisan bill will create a tax deduction of up to $25,000 for cash tips reported to employers by workers for withholding purposes on payroll taxes, with a cap on the salary for eligible workers at $160,000 annually.
Economists and labor advocates have criticized the legislation, with concerns it will incentivize the expansion of tipped work, undermine pay increases and would affect only a small segment of about 5% of low-paid workers who receive tips.
Just some napkin math, if you make $50k a year and reached the $25k threshold you'd get back about $5k in taxes. Not nothing, but they're also gonna make it harder to get SNAP and Medicaid benefits. If you don't qualify (i.e. jump through every hoop) for the latter that $5k is gone and then some. People are about to get more stingey with tipping too I imagine.
I'm going to be avoiding places that tips expanded into to subsidize wages entirely. Sit down restaurants will still get tips until we can get rid of them entirely, but that's it.
If a restaurant is gonna say "20% is the new 18%" I'm not gonna budge. It's a percentage. Food goes up then so does the tip.