President Trump signed a budget package into law that will eliminate federal income tax on worker tips, a move the White House hailed as a win for the working class, but which critics say offers only temporary benefits. Meanwhile, young job seekers in the UK are facing a tough labor market, and many consumers are still searching for deals after Presidents Day. The news comes as credit card balances continue to climb for many Americans.
The "big, beautiful bill," as it has been called, will provide tax relief to workers who rely on tips for a significant portion of their income, such as waiters, bartenders, and hairdressers, according to CBS News. The Independent Restaurant Coalition, however, pushed back on the notion that the tax cuts would help most low-wage workers, arguing that the benefits would be temporary.
Across the Atlantic, young people in the UK are struggling to find work. According to new figures from the Office for National Statistics (ONS), 16.1% of people aged 16 to 24 are unable to find work, compared to a national unemployment figure of 5.1%, BBC Business reported. Businesses in sectors that traditionally employ young people, like retail and hospitality, are cutting staff or not hiring due to higher costs.
In the US, many consumers are still looking for deals after Presidents Day. The Verge reported that discounts on earbuds, speakers, TVs, smart home tech, and other gadgets are still available.
For those carrying credit card debt, a $20,000 balance is substantial, but not automatically a crisis, according to CBS News. The article noted that rising interest rates and minimum payments can cause balances to snowball.
In the UK, a freeze on tax thresholds will remain in place until 2031, which could mean people pay more tax on a rising salary, according to BBC Business. The calculator applies to employees in England, Wales, and Northern Ireland.
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