New Delhi, May 21 -- In an unexpected development, the Republican-controlled Senate swiftly approved the "No Tax on Tips Act" on Tuesday, endorsing a proposal to an idea that has gained momentum since President Donald Trump campaigned on it in 2024.

The legislation would create a new tax deduction worth up to $25,000 for tips, limited to cash tips that that workers report to employers for withholding purposes on payroll taxes. The tax break is also restricted to employees who earn earn $160,000 or less in 2025, an amount that will rise with inflation in upcoming years.

Published by HT Digital Content Services with permission from MINT....