The Senate passed bipartisan legislation to eliminate tax on tips through unanimous consent in a surprise move Tuesday afternoon.
Republican Texas Sen. Ted Cruz’s No Taxes On Tips Act would exempt tips from taxation under the federal income tax. The legislation’s passage delivers on a central pledge of President Donald Trump’s 2024 presidential campaign to provide tax relief to tipped workers.
Democratic Nevada Sen. Jacky Rosen, a cosponsor of the legislation, went to the Senate floor Tuesday to ask for unanimous consent to pass the bill. No senators from either party objected to Rosen’s request.
“No tax and tips was one of President Trump’s key promises to the American people, which he unveiled in my State of Nevada,” Rosen said Tuesday. “And I am not afraid to embrace a good idea wherever it comes from.”
