Reported 1 day ago
In a groundbreaking tax reform signed by President Trump on July 4, 2025, federal income taxes on tips and overtime pay have been eliminated. This law allows workers to keep more of their earnings, promising potential tax benefits for millions, especially those earning tip income. However, studies suggest that many low-income earners might not see significant advantages, with 40% of households reporting tip income receiving no tax break. The new tax deductions, effective through 2028, aim to reduce the tax burden for eligible workers while raising concerns about potential revenue losses and market disruptions.
Source: YAHOO