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flag Senate passes "No Tax on Tips Act," exempting tips from federal taxes with annual limits.

flag 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. flag The bill, now moving to the House, seeks to provide relief to about 4 million tipped workers like servers and beauticians. flag 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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