Senate Unanimously Passes No Tax on Tips Act Exempting Cash Tips from Federal Income Tax

The United States Senate has unanimously passed the No Tax on Tips Act, a bill introduced by Sen. Ted Cruz (R-Texas) that exempts cash tips and card-charged gratuities from federal income tax via a 100% deduction come Tax Day. The bill, co-led by Sen. Jacky Rosen (D-Nev.), now heads to the U.S. House of Representatives for a vote.

The No Tax on Tips Act aims to provide real relief to hard-working Americans, particularly those in the service industry who rely heavily on tips to make ends meet. Sen. Cruz has consistently prioritized tax cuts and job access, having helped enact historic tax reform in 2017 that gave a tax cut to virtually every taxpayer in America.

Key Takeaways:

The No Tax on Tips Act exempts cash tips and card-charged gratuities from federal income tax via a 100% deduction come Tax Day.
The bill was introduced by Sen. Ted Cruz (R-Texas) and co-led by Sen. Jacky Rosen (D-Nev.).
The legislation now heads to the U.S. House of Representatives for a vote.
If passed, the bill would provide real relief to hard-working Americans, particularly those in the service industry.
Sen. Cruz has consistently prioritized tax cuts and job access, having helped enact historic tax reform in 2017.

Statistics:

100-0: The Senate vote in favor of the No Tax on Tips Act.
Millions of Americans: The number of people who will be affected by the exemption on tips.
2017: The year in which Sen. Cruz helped enact historic tax reform that gave a tax cut to virtually every taxpayer in America.
2024: The year in which President Donald Trump's campaign promise in support of the No Tax on Tips Act is aimed at becoming law.
100%: The percentage deduction for tipped wages that will be exempt from federal income tax.

Sources:

FOX BUSINESS
SEMAFOR
NBC News
DALLAS MORNING NEWS
DAILY CALLER
AXIOS
Background on Sen. Cruz's tax reform efforts and support for Texas businesses.