PALMETTO, Fla. — The U.S. Senate unanimously passed President Donald Trump’s campaign promise to end taxes on tips Tuesday. The plan would exclude a certain portion of workers’ tips from federal taxes.


What You Need To Know

  • The U.S. Senate unanimously passed Trump’s campaign promise of “No Tax on Tips”

  • It would establish a new tax deduction of up to $25,000 for tips and expand the business tax credit for employers

  • The House still needs to vote on their version of the tax break bill

  • Under the Senate’s bill, the new tax deduction is limited to cash tips received from a job where tipping is customary and reported for purposes of payroll tax withholding

Hailee Ryan has worked as a barista at Tenth Street Coffee for nearly two years and she says there’s one thing that makes a big difference when it comes to her paycheck.

“Tips are definitely a very big part of my check," she said. "I do work full time — I work five days a week — so tips are definitely very important to me."

And having built a loyal customer base, she receives tips often.

“I love our customers here. I love our regulars," Ryan said. "They’re always so generous with their tips, and they never skimp out."

The Senate version of the bill would establish a new tax deduction of up to $25,000 for tips and expand the business tax credit for employers. The House still needs to vote on their version of the tax break bill.

If that passes the House, then the differences between the two plans would need to be reconciled and passed again in both chambers.

Under the Senate’s bill, the new tax deduction is limited to cash tips received from a job where tipping is customary and reported for purposes of payroll tax withholding.

Ryan, who said she’s neutral on the issue, is still seeking clarity on how it would impact her pay.

“What’s it going to look like when we get that back? Is it going to affect us? Are we going to owe more? Are we going to owe less? Are we going to get more?” she said.