The U.S. Senate wants to get rid of taxes on tips and it性视界传媒檚 doing it with total bipartisan support, as Republicans and Democrats voted to approve a bill Tuesday evening co-sponsored by Montana Sen. Steve Daines.
While the bill still has a way to go before reaching President Trump性视界传媒檚 sharpie in the Oval Office, for Montana the move is notable because Big Sky Country did the exact opposite just last year when it began taxing tips.
性视界传媒淎nytime we can provide tax relief for the middle class is something we ought to take a look at,性视界传媒 Daines told the Chronicle on Wednesday morning. 性视界传媒淭o see it pass with unanimous support in the United States Senate is a rare feat.性视界传媒
On Tuesday, the bipartisan bill received a push from Democrat Sen. Jacky Rosen of Nevada, who sent it through a unanimous consent agreement, which 性视界传媒 so long as no other senator opposes 性视界传媒 allows the bill to be approved.
The process is rare in today性视界传媒檚 political climate. It性视界传媒檚 even rarer to gather support from all 100 members of the Senate, especially when altering tax code.
性视界传媒溞允咏绱綑No taxes on tips性视界传媒 was one of Trump性视界传媒檚 key promises to the American people,性视界传媒 Rosen said, Politico reported. 性视界传媒淎nd I am not afraid to embrace a good idea wherever it comes from.性视界传媒
The 性视界传媒淣o Tax on Tips Act性视界传媒, or S.129, was introduced by Republican Sen. Ted Cruz of Texas.
On Wednesday, Daines celebrated the win.
性视界传媒淚t recognizes the importance of providing some tax relief for hardworking middle-class Americans,性视界传媒 Daines said, noting that it性视界传媒檚 a tax break for some while incentivizing people to work in the service industry.
性视界传媒淚t性视界传媒檚 not on the president性视界传媒檚 desk yet, but it was an important step forward,性视界传媒 he said. 性视界传媒淲e性视界传媒檒l see what the House does with it.性视界传媒
In Montana, tips were only first taxed last year after the Legislature tied its tax structure to the federal system in 2021. At the time, Sen. Greg Hertz, R-Polson, argued in favor of taxing tips as a fairer method.
Hertz continues to stand by that perspective. In an interview with the Chronicle, he referred to removing taxes on tips as 性视界传媒減oor tax policy.性视界传媒
性视界传媒淓ven at the federal level, why should you exclude one form of income from taxation when you might have another person doing something similar but all their wages are W2 wages and they性视界传媒檙e getting taxed 100%?性视界传媒 Hertz asked. 性视界传媒淚t性视界传媒檚 just a matter of fairness.性视界传媒
While Montana didn性视界传媒檛 specifically target tax tips in 2021, it did so by default in following the federal tax structure 性视界传媒 like other states. If Trump signs the 性视界传媒淣o Tax on Tips Act性视界传媒 into law, it would impact Montana state taxes.
Tips in Montana would once again go untaxed as they were before 2021.
While some taxpayers would benefit, the state would lose some $6 million in extra funding based on the roughly $105 million Montanans reported as exempt tipped income in 2021, the Montana Free Press reported.
