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Senate passes "No Tax on Tips Act," exempting tips from federal taxes with annual limits.
The U.S. Senate unanimously passed the "No Tax on Tips Act," aiming to exempt tips from federal income tax, with a deduction cap of $25,000 annually for workers earning under $160,000.
The bill, now moving to the House, seeks to provide relief to about 4 million tipped workers like servers and beauticians.
However, critics argue that the tax cut could worsen the budget deficit and may not significantly benefit many workers who already pay little federal income tax.
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El Senado aprueba el "No Tax on Tips Act", eximiendo las propinas de los impuestos federales con límites anuales.