Austin News

U.S. Sen. Ted Cruz (R-Texas), along with Sens. Steve Daines (R-Mont.), Rick Scott (R-Fla.), and Kevin Cramer (R-N.D.), introduced the No Tax on Tips Act to exempt tips from federal income tax. Rep. Byron Donalds (R-Fla.-19) presented companion legislation in the U.S. House of Representatives, joined by Derrick van Orden (R-Wis.-3).

Upon the House introduction, Sen. Cruz stated, "I am proud to partner with Rep. Donalds to champion the No Tax on Tips Act. This common-sense, pro-worker legislation allows millions of tipped workers—including bartenders, waiters, and beauty professionals—to keep more of their hard-earned paycheck. Our legislation is more important than ever, as President Biden continues to push failed policies that exacerbate inflation and hurt working families. I call on the Senate and House to expeditiously pass this legislation, and look forward to working with Rep. Donalds to expeditiously pass into law."

Rep. Donalds remarked, "For far too long, Washington’s focus has been on how much of your paycheck politicians and unelected bureaucrats will take to fund their destructive agendas. Americans deserve to take home more of what they have earned, especially given the self-inflicted economic hardships created by the Biden administration. That is why Senator Cruz and I have introduced the 'No Tax on Tips Act.' Our bill allows taxpayers to claim a 100% above-the-line deduction at filing for tipped wages. Policymakers must put the needs and financial interests of hardworking Americans first."

The bill aims to exempt “cash tips”—including cash, credit and debit card charges, and checks—from federal income tax by permitting taxpayers to claim a 100% above-the-line deduction for tipped wages.

Senator Cruz has consistently advocated for American taxpayers retaining their earnings and ensuring Texans have job opportunities.

In 2017, Sen. Cruz contributed to historic tax reform that provided a tax cut for nearly every taxpayer in America and reduced taxes on small businesses, farmers, ranchers, and job producers—efforts that have facilitated job creation in Texas.

Additionally, he has worked towards making these 2017 tax cuts permanent for individuals.

Senator Cruz also played a role in passing the USMCA trade agreement signed by President Trump—a significant win for Texas farmers, ranchers, businesses, and manufacturers.

For his contributions supporting Texas businesses both large and small, Sen. Cruz received the U.S. Chamber of Commerce’s prestigious “Spirit of Enterprise” award.