Bill to Make Tips Tax-Free
In a rare moment of bipartisan agreement, the U.S. Senate has unanimously passed the No Tax on Tips Act, a bill that would exempt tip income from federal taxation, providing direct financial relief to millions of American service industry workers.
Introduced by Senator Ted Cruz of Texas and co-sponsored by Senator Jacky Rosen of Nevada, the legislation is designed to support workers in sectors like hospitality, food service, and delivery—jobs where tipping often makes up the majority of income.
“This is about fairness,” Senator Cruz said. “These workers are putting in long hours and living paycheck to paycheck. They deserve to keep more of what they earn.”
Senator Rosen added that in states with tourism-heavy economies, such as Nevada, service workers are the “backbone of the economy,” and this bill gives them “the respect and support they deserve.” Read more below
