SENATE PASSES ‘NO TAX ON TIPS’ BILL — HERE’S HOW IT DIFFERS FROM THE HOUSE VERSION
In a major win for service workers and the working-class agenda, the U.S. Senate has passed the “No Tax on Tips Act”, aligning with one of President Trump’s key campaign promises.
But while the House version was buried in the broader One Big Beautiful Bill, the Senate’s version is standalone, streamlined, and specific—and that could change everything.
Key Differences Between Senate & House Versions:
Senate Bill:
Exempts up to $25,000 in cash tips from federal income tax for workers making under $160,000 annually.
Expands employer payroll tax credits for grooming, hospitality, and care industries.
Not tied to a time window—potentially permanent.
House Version (Part of OBBB):
Offers similar tax relief, but limited to 2025–2028.
Broader scope, bundled with unrelated reforms like SALT caps and overtime deductions.
No specific expansion for employer-side credits.
Why It Matters:
Tens of millions of tipped workers—waitstaff, barbers, rideshare drivers, delivery folks—stand to save thousands each year.
Critics say the policy helps higher earners more than low-wage workers and could cost the U.S. Treasury $10–15 billion annually.
Supporters say it’s a game-changer for workers living off daily grind, not W-2 comfort.
🏛 What’s Next:
The House and Senate must reconcile their bills—one big and bundled, the other lean and focused. All eyes are on how Trump and Speaker Johnson will steer the final version to the President’s desk.
#NoTaxOnTips #SenateBill #TrumpAgenda #ServiceWorkers #TaxRelief #WorkingClassWins #BETTRNews #JSA2026 #MAGA2026 #OneBigBeautifulBill
https://www.forbes.com/sites/kellyphillipserb/2025/05/21/senate-passes-a-no-tax-on-tips-bill-heres-how-it-differs-from-house-version/?utm_medium=social&utm_campaign=socialflowForbesMainFB&utm_source=ForbesMainFacebook&fbclid=IwZXh0bgNhZW0CMTEAAR4OcAL_dPl6K_lVh9tjJFJFvsNhJWluUb3SX_Ng2888Tnf9f6xQrUHBrdqC4g_aem_bjechTJozmAptnPRUR7PyA
In a major win for service workers and the working-class agenda, the U.S. Senate has passed the “No Tax on Tips Act”, aligning with one of President Trump’s key campaign promises.
But while the House version was buried in the broader One Big Beautiful Bill, the Senate’s version is standalone, streamlined, and specific—and that could change everything.
Key Differences Between Senate & House Versions:
Senate Bill:
Exempts up to $25,000 in cash tips from federal income tax for workers making under $160,000 annually.
Expands employer payroll tax credits for grooming, hospitality, and care industries.
Not tied to a time window—potentially permanent.
House Version (Part of OBBB):
Offers similar tax relief, but limited to 2025–2028.
Broader scope, bundled with unrelated reforms like SALT caps and overtime deductions.
No specific expansion for employer-side credits.
Why It Matters:
Tens of millions of tipped workers—waitstaff, barbers, rideshare drivers, delivery folks—stand to save thousands each year.
Critics say the policy helps higher earners more than low-wage workers and could cost the U.S. Treasury $10–15 billion annually.
Supporters say it’s a game-changer for workers living off daily grind, not W-2 comfort.
🏛 What’s Next:
The House and Senate must reconcile their bills—one big and bundled, the other lean and focused. All eyes are on how Trump and Speaker Johnson will steer the final version to the President’s desk.
#NoTaxOnTips #SenateBill #TrumpAgenda #ServiceWorkers #TaxRelief #WorkingClassWins #BETTRNews #JSA2026 #MAGA2026 #OneBigBeautifulBill
https://www.forbes.com/sites/kellyphillipserb/2025/05/21/senate-passes-a-no-tax-on-tips-bill-heres-how-it-differs-from-house-version/?utm_medium=social&utm_campaign=socialflowForbesMainFB&utm_source=ForbesMainFacebook&fbclid=IwZXh0bgNhZW0CMTEAAR4OcAL_dPl6K_lVh9tjJFJFvsNhJWluUb3SX_Ng2888Tnf9f6xQrUHBrdqC4g_aem_bjechTJozmAptnPRUR7PyA
🧾 SENATE PASSES ‘NO TAX ON TIPS’ BILL — HERE’S HOW IT DIFFERS FROM THE HOUSE VERSION
In a major win for service workers and the working-class agenda, the U.S. Senate has passed the “No Tax on Tips Act”, aligning with one of President Trump’s key campaign promises.
But while the House version was buried in the broader One Big Beautiful Bill, the Senate’s version is standalone, streamlined, and specific—and that could change everything.
🔍 Key Differences Between Senate & House Versions:
Senate Bill:
Exempts up to $25,000 in cash tips from federal income tax for workers making under $160,000 annually.
Expands employer payroll tax credits for grooming, hospitality, and care industries.
Not tied to a time window—potentially permanent.
House Version (Part of OBBB):
Offers similar tax relief, but limited to 2025–2028.
Broader scope, bundled with unrelated reforms like SALT caps and overtime deductions.
No specific expansion for employer-side credits.
💬 Why It Matters:
Tens of millions of tipped workers—waitstaff, barbers, rideshare drivers, delivery folks—stand to save thousands each year.
Critics say the policy helps higher earners more than low-wage workers and could cost the U.S. Treasury $10–15 billion annually.
Supporters say it’s a game-changer for workers living off daily grind, not W-2 comfort.
🏛 What’s Next:
The House and Senate must reconcile their bills—one big and bundled, the other lean and focused. All eyes are on how Trump and Speaker Johnson will steer the final version to the President’s desk.
#NoTaxOnTips #SenateBill #TrumpAgenda #ServiceWorkers #TaxRelief #WorkingClassWins #BETTRNews #JSA2026 #MAGA2026 #OneBigBeautifulBill
https://www.forbes.com/sites/kellyphillipserb/2025/05/21/senate-passes-a-no-tax-on-tips-bill-heres-how-it-differs-from-house-version/?utm_medium=social&utm_campaign=socialflowForbesMainFB&utm_source=ForbesMainFacebook&fbclid=IwZXh0bgNhZW0CMTEAAR4OcAL_dPl6K_lVh9tjJFJFvsNhJWluUb3SX_Ng2888Tnf9f6xQrUHBrdqC4g_aem_bjechTJozmAptnPRUR7PyA
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