The Senate passed a surprise bill Tuesday to eliminate federal taxes on tips. The move came through unanimous consent, with no objections from either party. It marked a major win for tipped workers — and for one of Trump’s key 2024 promises.
Senator Ted Cruz’s No Taxes On Tips Act was at the center of it. The bill would exempt tipped wages from federal income tax. It delivers on Trump’s pledge to provide relief for service workers.
Democratic Senator Jacky Rosen brought the bill to the floor. “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. “And I am not afraid to embrace a good idea wherever it comes from.”
Cruz followed with praise for the bill’s passage. He called it “commonsense, bipartisan tax reform.” Trump, he reminded everyone, made this promise — and now it’s close to law.
“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%,” Cruz said. “Whether it passes free standing or as part of the bigger bill — one way or another — no tax on tips is going to become law.”
Trump first floated the idea last June in Nevada. “When I get to office, we are going to not charge taxes on tips,” he told a rally crowd. “We’re not going to do it, and we’re going to do that right away.”
The House GOP’s tax and spending package supports this plan. It includes provisions to eliminate taxes on both tipped wages and overtime pay. It’s part of Trump’s broader economic agenda.
Cruz was also at the White House Monday for another big win. He and Senator Amy Klobuchar celebrated the passage of the Take It Down Act, targeting revenge porn and AI deepfakes. The First Lady, Melania Trump, had pushed hard for the law.
“I’m proud of what the Senate just did,” Cruz said Tuesday. “I commend Democrats and Republicans, even at a time of partisan division, coming together and agreeing on this commonsense policy.”