In a rare show of unity, the United States Senate made history on Tuesday by voting 100–0 to pass the No Tax on Tips Act, a move that would eliminate federal income taxes on gratuities for millions of American service workers. The sweeping, bipartisan legislation marks a significant step toward tax relief for some of the country's lowest-paid workers—those who rely on tips to make ends meet.
Passed on 20 May, the bill establishes a federal tax deduction worth up to $25,000 (£18,636) annually for cash tips reported to employers. It is the first major tax initiative in decades specifically targeting tipped workers. The legislation now heads to the House of Representatives for further consideration.
