Another promise kept.
The Senate unanimously passed bipartisan legislation Tuesday afternoon to eliminate taxes on tips.
Republican Texas Sen. Ted Cruz’s “No Taxes On Tips Act” exempts tips from federal income taxation. The bill fulfills a key promise from President Donald Trump’s 2024 campaign to provide tax relief to tipped workers.
From The Hill:
Trump debuted his proposal to exempt tips from federal taxes at a rally in Nevada in June 2024, and the issue became a key talking point on the trail as a way of courting working-class voters.
Polling suggests that the proposal has nationwide support, but the policy gained significant traction in Nevada, which has the most per-capita tipped workers of any state in the nation. Roughly 25 percent of Nevada workers rely on tips, according to the state’s senators, Rosen and Sen. Catherine Cortez Masto (D-Nev.), who are co-sponsors of the legislation.
Trump has pointed to the policy’s popularity among service and hospitality workers as a big factor in his November victory in Nevada, which flipped red for the first time in decades.
In January, Trump took a victory lap in the battleground state and thanked Nevada voters for delivering the state to him, promising to uphold his commitment to eliminating taxes on tips.
“In the coming weeks, I’ll be working with Congress to get a bill on my desk that cuts taxes for workers, families, small businesses, and, very importantly, keeps my promise for a thing called …. No tax on tips,” Trump told the crowd.
“So if you’re a restaurant worker, a server, a valet, a bellhop, a bartender, or one of my caddies — I go through caddies like candy, if I play badly, I always blame my caddy — or any other worker who relies on tipped income, your tips will be 100 percent yours,” he continued.
Senator Ted Cruz shared the good news after the act cleared the Senate, saying, “I commend Democrats and Republicans, even in a time of partisan division, coming together and agreeing on this common-sense policy. I think that’s terrific for workers in all 50 states.”
Watch the clip below:
🚨Senate UNANIMOUSLY Passes No Tax on Tips Act
The No Tax on Tips Act just passed in the Senate with a vote of 100-0. @SenTedCruz, who introduced the legislation, speaks on the unanimous vote:
“I commend Democrats and Republicans, even in a time of partisan division, coming… pic.twitter.com/lFuIEWi0AI
— The Daily Signal (@DailySignal) May 20, 2025
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