Senate Passes ‘No Tax on Tips Act’
The Senate unanimously passed Ted Cruz’s “No Tax on Tips Act,” a key campaign promise by President Trump.
The bill removes federal income tax on tips, aiming to help millions of service workers.
Cruz on Impact
“President Trump made a promise to the American people that he would eliminate taxes on tips,” Cruz said.
“This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers.”
Bill Details
The act covers cash and card tips, allowing full deductions from 2025–2028.
It includes income caps and limits to jobs that “customarily and regularly” earn tips before 2025.
Next Steps
The bill moves to the GOP-controlled House. “I urge my colleagues in the House to pass this important bill and send it to the President’s desk,” Cruz added.