The proposal establishes a new tax credit of up to $25,000 for cash tips.
The Republican-led senator passed a proposal Tuesday to eliminate federal taxes on tips, bringing him a step closer to fulfilling the campaign promises of President Donald Trump, which has garnered support from both sides of the political spectrum.
The measure, whether received by cash, credit, debit card or check, will earn a new tax deduction of up to $25,000 in occupations that are acquired by employees of the occupation and are reported to the employer with the purpose of withholding payroll tax.
