Understanding the No Tax on Tips Act

What is the primary focus of the No Tax on Tips Act?

• To increase the minimum wage for tipped workers

• To allow workers to deduct a portion of their tips from federal income taxes

• To provide health benefits to all tipped workers

• To eliminate all taxes for tipped workers

Under the No Tax on Tips Act, what is the maximum amount of tips that can be deducted from federal income taxes?

• $25,000

• $20,000

• $15,000

• $10,000

Which of the following is NOT affected by the No Tax on Tips Act?

• The eligibility of cashiers for the deduction

• The federal minimum wage for tipped workers

• Payroll taxes like Social Security and Medicare

• Federal income tax deductions

Who introduced the idea of the No Tax on Tips Act during their campaign?

• President Trump

• Senator Warren

• Senator Sanders

• President Biden

What is one argument critics have against the No Tax on Tips Act?

• It increases the federal minimum wage

• It unfairly benefits only those in tipped roles

• It eliminates payroll taxes

• It provides health benefits to all workers

What historical period is associated with the origins of tipping in the U.S.?

• The post-Civil War era

• The Great Depression

• The Civil Rights Movement

• The Industrial Revolution

What is the 45b tax credit related to?

• Providing health benefits

• Increasing the minimum wage

• Offsetting payroll taxes for employers

• Reducing federal income taxes for workers

How much could the No Tax on Tips Act cost the federal government annually in lost tax revenue?

• $5 billion

• $25 billion

• $10-15 billion

• $20 billion

What is a potential effect of the No Tax on Tips Act on customer behavior?

• Customers may demand more services

• Customers may stop tipping altogether

• Customers may tip less frequently

• Customers may feel more comfortable tipping

What is a proposed expiration date for the tax break under the No Tax on Tips Act?

• 2025

• 2028

• 2026

• 2027