U.S. Senator Ted Cruz of Texas announced the Senate’s approval of his No Tax on Tips Act, which passed unanimously with a 100-0 vote. The legislation aims to exempt tips from federal income tax, allowing taxpayers to claim a full deduction for tipped wages during filing.
Senator Cruz stated, “President Trump made a promise to the American people that he would eliminate taxes on tips. In Congress, I formed a bipartisan, bicameral coalition to get that done, and in the Senate introduced the No Tax on Tips Act. Today, I went with Senator Rosen to the floor to secure Senate passage of the bill. This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck. I urge my colleagues in the House to pass this important bill and send it to the President’s desk to be signed into law.”
The bill specifically exempts cash tips—whether given in cash or through credit and debit card charges—from being taxed as part of federal income by permitting a 100% deduction at filing for these wages. Provisions are included to ensure that only employees who traditionally receive tips benefit from this exemption.
Senator Cruz has consistently focused on reducing taxes and enhancing job access throughout his career:
– He played a significant role in enacting tax reforms in 2017 that provided widespread tax cuts across America.
– He advocated for making these 2017 tax cuts permanent for individuals.
– He contributed to passing the USMCA trade agreement under President Trump, benefiting Texas farmers and businesses.
– For his contributions toward supporting businesses in Texas, Sen. Cruz was awarded the U.S. Chamber of Commerce’s “Spirit of Enterprise” award.
