Senate unanimously approves bill to eliminate tax on tips
Share and Follow


The Senate on Tuesday passed a bill that would eliminate federal taxes on tips, advancing with the help of Democrats a top campaign promise of President Trump.

Sen. Jacky Rosen (D-Nev.) brought the bill to the floor with the expectation that it would be blocked, but Sen. Ted Cruz (R-Texas) declined to. It passed via unanimous consent (UC).

“I just want to say: This is great news for Nevada,” Rosen said after the bill was advanced, lauding the work of the millions of hospitality and service workers in her home state, who she says are being “squeezed by rising costs.” 

“This bill is not the be-all, end-all, but it’s going to offer immediate financial relief while the Senate continues to work to lower costs and find other avenues of relief for hardworking families,” she said before yielding the floor.

Trump unveiled the idea last year during a campaign stop in Nevada, which is home to scores of tipped workers. 

Cruz noted in his floor remarks in support of Rosen’s UC request that the Nevada senators Rosen and Sen. Catherine Cortez Masto (D-Nev.) relayed that roughly 25 percent of Nevada workers rely on tips. Rosen said that the Silver State has more tipped workers per capita than any other. 

“Nevadans, our families, are being squeezed, and we need real relief,” Rosen said in her floor remarks. “For some, many service and hospitality workers, tips aren’t extra, it’s part of their income that they use to make ends meet.”

The Texas Republican spoke up in support of the bill immediately after, explaining the genesis of the push by Trump during the campaign and hailing it as a moment of “political genius” by the president to back the idea. 

The bill, the No Tax on Tips Act, will now head to the House, where the provision is expected to be passed one way or another be it via the stand-alone measure or Trump’s “big, beautiful bill” that will extend tax cuts. 

“Here’s the good news: With what we just saw now, the certainty that we will see no tax on tips become the law of the land, I think, is very close to 100 percent,” Cruz said. “One way or another, no tax on tips is going to become law.” 

The legislation would establish a new tax deduction of up to $25,000 for tips, among other things.

Updated at 5:07 p.m.

Share and Follow
You May Also Like
White House denies reporting by Guardian on VA benefits: 'totally FALSE story'

White House Disputes Guardian’s VA Benefits Reporting as ‘Completely Inaccurate’

(The Hill) — The Trump administration on Monday denied reporting by The…
Supreme Court rejects Texas's bid to axe nuclear waste storage site

The Supreme Court denies Texas’ attempt to remove nuclear waste storage facility

The Supreme Court rejected Texas’s bid to axe federal approval of a…
In Iran's ‘forever war’ against the US, regime has targeted and killed Americans worldwide

In Iran’s ‘forever war’ against the US, regime has targeted and killed Americans worldwide

NEWYou can now listen to Fox News articles! While the U.S. weighs…
'We are in a war zone,' Iranians speak out as Israeli strikes continue hitting regime targets

‘We are in a war zone,’ Iranians speak out as Israeli strikes continue hitting regime targets

NEWYou can now listen to Fox News articles! As Israeli airstrikes pounded…
Jon Stewart rips Trump on Israel-Iran conflict: 'Weren't we about to make a nuclear deal?'

Jon Stewart criticizes Trump regarding the Israel-Iran conflict: ‘Weren’t we on the verge of reaching a nuclear deal?’

Jon Stewart is tearing into President Trump, mocking him as the country’s failed “dealmaker…
After Trump's departure, G7 leaders fail to reach agreements on key issues

After Trump’s departure, G7 leaders fail to reach agreements on key issues

NEWYou can now listen to Fox News articles! The G7 summit of…
Adam Beckerink Chicago news: Bodycam video of Caitlin Tracey detailing domestic abuse allowed at Berrien County, Michigan trial

Bodycam footage of Caitlin Tracey recounting domestic abuse can be used in Berrien County, Michigan court case

CHICAGO (WLS) — His wife was found dead in a stairwell inside…
TikTok's deadline likely to be extended again by Trump

Trump to Likely Extend TikTok’s Deadline Again

It will be the third time Trump has extended the deadline. WASHINGTON…