The Senate unexpectedly passed the “No Tax on Tips Act” on Tuesday, paving the way for President Donald Trump to make good on a 2024 campaign promise.
The bill, which was introduced by Sen. Ted Cruz (R-Texas) in January, could provide a tax deduction up to $25,000 for workers who receive tips and make under $160,000 annually (the latter number is subject to change due to inflation). It passed a vote of “unanimous consent,” meaning all senators, regardless of party, voted in favor of it. It still has to pass the House before it lands on Trump’s desk.
The Committee for a Responsible Federal Budget estimated that the piece of legislation could cost the government $150 billion to $250 billion between 2026 and 2035 if implemented.
“This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck,” Cruz said in a statement. “I urge my colleagues in the House to pass this important bill and send it to the President’s desk to be signed into law.”
There were a total of 8 co-sponsors of the bill, including two Nevada Democrats: Sens. Jacky Rosen and Catherine Cortez Masto.
