Hard working Americans can now keep more of the money they earn thanks to the No Tax on Tips Act as passed Tuesday by the U.S. Senate.
The Guardian notes the bill was introduced in January 2025 by Sen. Ted Cruz. A bipartisan group of co-sponsors subsequently joined to give it their unanimous backing.
No objections were made resulting in the free passage of the bill which now goes to the House.
U.S. Senate passes the "No Tax on Tips Act" by unanimous consent
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Promises made... pic.twitter.com/08rD1DogIm
The bipartisan bill will create a tax deduction of up to $25,000 for cash tips reported to employers by workers for withholding purposes on payroll taxes, with a cap on the salary for eligible workers at $160,000 annually, the report makes clear.
President Donald Trump vowed at a Las Vegas rally in June 2024 to make permanent his 2017 tax cuts as set to expire at the end of 2025.
He also pledged during that rally to eliminate taxes on tips – a pledge so effective his opponent Kamala Harris copied it in August.
FLASHBACK: Kamala Directly Copies Trump’s No Tax on Tips Plan
The bill senators passed now goes to the House, where Republicans have been seeking to include a version of the proposal in their sweeping party-line package for Trump’s agenda.
“Whether it passes free-standing or as part of the bigger bill, one way or another, ‘No Tax on Tips’ is going to become law and give real relief to hard-working Americans,” Cruz said on the floor.
“So I’m proud of what the Senate just did, and I commend Democrats and Republicans, even at a time of partisan division, coming together and agreeing on this commonsense policy.”
