Senate unanimously approves $25,000 tax break for tipped workers

The U S Senate has passed a new bill that would offer a tax deduction on tips worth up to This bill if enacted into law would also extend to business tax credits for payroll taxes on tips in beauty and spa services Sen Ted Cruz a Texas Republican is pushing the proposal which passed unanimously an outcome considered rare for substantive provision NEW PROJECTION SIGNALS GOOD NEWS FOR FAMILIES WORKERS IN TRUMP'S 'BIG BEAUTIFUL BILL'There are stipulations in the new bill an employee with compensation exceeding in the prior tax year would not be eligible to claim the new tax deduction for tips The bill is limited to cash tips received by occupations that are customarily tipped Tipped occupations are jobs where tips are common in the U S such as waiters waitresses and professionals providing beauty services like barbering hair care nail care esthetics body and spa treatments 'FAILURE'S NOT AN OPTION' TRUMP BUDGET BILL WILL BE 'BIG' HELP FOR SENIORS TOP HOUSE TAX-WRITER SAYSThe Budget Lab at Yale say they estimate there will be approximately million workers in tipped occupations in They must also be revealed by the employee to the employer for withholding payroll taxes Under the current law only tips exceeding per month are required to be released According to the analysis by Budget Lab a non-tipped worker in was a minimum of approximately years older than the typical tipped worker They also say one-third of the number of tipped workers were below with being teenagers This new bill if passed would cost billion in federal revenues over years according to estimates by the center-right Peter G Peterson Foundation Sen Jacky Rosen D-Nevada pointed out during her floor speech that this bill was one of President Donald Trump's key campaign promises I am not afraid to embrace a good idea wherever it comes from So I agreed we need to get this done she mentioned The passing of this bill through the Senate occurs as congressional Republicans attempt to seek advancement of a massive tax cut and spending package that will create a tax break on tips for the next four years The next step is the House of Representatives before it becomes law