Bipartisan Support and Impact
The unanimously passed the "No Tax on Tips Act," a legislation eliminating federal income taxes on tipped wages, co-sponsored by Senators and . This move fulfills a campaign promise by President and aims to provide financial relief to millions of Americans.
The bill introduces a new tax deduction for tips up to $25,000, limited to cash tips reported by employees for payroll tax purposes. It's designed to benefit employees earning $160,000 or less in 2025, with adjustments for inflation.
Legislative Process and Reactions
The legislation passed through a "unanimous consent" request in the Senate, a procedure typically reserved for less contentious matters, indicating broad support across party lines. It now moves to the House for consideration.
Senators Cruz and Rosen, despite their political differences, championed the bill, highlighting its importance for blue-collar workers. Senate Minority Leader also praised the bill, emphasizing its focus on providing tax relief to working Americans rather than the wealthy.