On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBB) into law.\u00a0Under OBBB, tax reductions worth trillions that were scheduled to expire in 2025 will now remain in place permanently. It also adds new breaks, including tax-free overtime pay and an extra deduction for seniors. According to the Congressional Budget Office, the measure is expected to raise federal deficits by $3.4 trillion over the next decade.<\/p>\n
This is expected to provide direct financial relief to millions of Americans who are part of the service industry.<\/p>\n
<\/p>\n
<\/p>\n
<\/p>\n
This bill is popular among workers, especially those who work in hospitality, but just like the overtime deduction, it isn\u2019t technically a true tax cut but a targeted deduction that favors some groups over others.<\/p>\n
<\/p>\n
<\/p>\n
<\/p>\n
Senator Ted Cruz of Texas, who introduced the bill along with Senator Jacky Rosen of Nevada, said, \u201cThis is about fairness. These workers are putting in long hours and living paycheck to paycheck. They deserve to keep more of what they earn.\u201d<\/p>\n
Senator Rosen emphasized that service workers in tourism-heavy economies like Nevada are the \u201cbackbone of the economy,\u201d and that the bill offers them \u201cthe respect and support they deserve.\u201d<\/p>\n
The No Tax on Tips Act proposes amending the federal tax code to make tip income exempt from federal income taxes. Under current law, tipped workers must report their tips as income, and employers are required to withhold taxes. If the bill becomes law then tips from customers would still need to be reported but they would no longer be taxed at the federal level. The change applied to tips only and excludes wages and employer-paid bonuses.<\/p>\n","protected":false},"excerpt":{"rendered":"
On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBB) into law.\u00a0Under OBBB, tax reductions worth trillions that were scheduled to expire in 2025 will now remain in place...<\/p>\n","protected":false},"author":1,"featured_media":2498,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/originaltastex.com\/index.php?rest_route=\/wp\/v2\/posts\/8571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/originaltastex.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/originaltastex.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/originaltastex.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/originaltastex.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8571"}],"version-history":[{"count":1,"href":"https:\/\/originaltastex.com\/index.php?rest_route=\/wp\/v2\/posts\/8571\/revisions"}],"predecessor-version":[{"id":8572,"href":"https:\/\/originaltastex.com\/index.php?rest_route=\/wp\/v2\/posts\/8571\/revisions\/8572"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/originaltastex.com\/index.php?rest_route=\/wp\/v2\/media\/2498"}],"wp:attachment":[{"href":"https:\/\/originaltastex.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/originaltastex.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/originaltastex.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}