The Senate passed a bill on Monday which aims to eliminate taxes on tips in the United States. While it still has a long road before it takes effect, here's what Tennesseans should know.

Nixing income taxes was one of President Donald Trump's top policy promises during his 2024 election campaign.

What are the pros and cons of the No Tax on Tips billion and what do you need to know before it goes into effect.

They explained that servers are already legally obligated to claim 100% of their tips, including cash. But cash is not tracked to enforce taxation, so it’s well known that servers supplement their meager hourly wages by keeping cash off the books. The unofficially tax-free earnings help people with low incomes get by.

Trump offered few details at the time, but later made similar pledges to eliminate taxes on other forms of income, including overtime wages and Social Security payments. Those ideas, along with a tax deduction for auto loan interest, are also included in the GOP’s budget bill.

The budget bill approved by the House promises to benefit many food workers, but some details are still unclear.

The legislation has implications for those who give gratuities and those who pocket them, with the potential to leave both sides feeling shortchanged.

America’s Golden Age may extend to restaurant service if “No Tax on Tips” becomes law, according to U.S. Rep. Jimmy Patronis.