Senate passes Trump’s ‘no tax on tips’ proposal in surprise move
The Senate recently passed the “No Tax on Tips” act, a proposal that allows employees who traditionally earn tips to deduct that portion of their income from their federal income tax.This legislation, inspired by a campaign promise from President Donald Trump, received bipartisan support, led by Senators Ted Cruz and Jacky Rosen. The measure allows deductions up to $25,000 and excludes employees earning over $160,000 annually.
The unanimous consent request made by Rosen in the GOP-led Senate was notable as it separated this popular policy from a broader, contentious Republican agenda that Democrats oppose. Rosen emphasized the need for immediate financial relief for service employees without tying it to possibly harmful budget proposals.
Cruz expressed confidence that the measure woudl become law soon, providing much-needed support for hardworking americans reliant on tips. the act represents an unexpected victory in a divided legislative environment and highlights a rare moment of cross-party cooperation on an issue with significant implications for service workers.
Senate passes Trump’s ‘No Tax on Tips’ proposal in surprise move by Democrat
On Tuesday, the Senate abruptly approved “No Tax on Tips” legislation inspired by a campaign promise made by President Donald Trump, delivering an unexpected policy win despite GOP infighting on his broader domestic agenda.
The bipartisan proposal, led in the upper chamber by Sens. Ted Cruz (R-TX) and Jacky Rosen (D-NV), passed after no member objected to a motion from Rosen to approve it via unanimous consent.
The measure, dubbed the No Tax on Tips Act, would allow traditionally tipped employees to deduct that portion of their wages from federal income tax. Deductions are capped at $25,000, and employees with compensation exceeding $160,000 annually are not eligible to claim the new deductions.
Rosen’s unanimous consent request in the GOP-led Senate also gave Democrats a small win by extrapolating the Trump-endorsed policy popular with voters from a House Republican megabill that Democrats vehemently oppose. House Republicans are attempting to pass the no taxes on tips proposal by including it in the “one big, beautiful bill” working through the chamber that focuses on the president’s broader agenda on taxes, the border, and energy.
“We shouldn’t be forcing working families to choose between keeping their healthcare or keeping their tips, which is why we want this bipartisan bill to pass on its own, not part of a harmful extreme budget bill,” Rosen said. “If we’re serious about providing service employees with financial relief, let’s do it now.”
TRUMP REITERATES CAMPAIGN TRAIL PROMISE OF NO TAX ON TIPS AT LAS VEGAS RALLY
Trump crafted the idea during a campaign stop in Las Vegas, Nevada, last year. Nevada is a battleground state with many service industry workers who rely on tips, and lawmakers from both sides of the aisle largely embraced the legislation.
“With what we saw now, the certainty that we will see No Tax on Tips become the law of the land, I think, is very close to 100%,” Cruz said. “Whether it passes freestanding or part of a bigger bill, one way or another, No Tax on Tips is going to become law and give real relief to hardworking Americans.”
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