Senate Passes Groundbreaking ‘No Tax on Tips’ Bill Unanimously
Hey everyone, I just wanted to talk for a minute about a major shift that’s making waves in Washington — and if you work in a job where tips are a big part of your income, this is something you’re going to want to hear. The Senate has just unanimously passed the “No Tax on Tips Act.” Yep, you heard that right — no taxes on your reported cash tips, up to a certain limit.
Now, let’s put this in context. This isn’t just another political talking point. This is real legislation that came out of nowhere, especially considering how partisan things usually are in Congress these days. The bill was introduced earlier this year by Senator Ted Cruz, and interestingly enough, it got support from both sides of the aisle — including two Democratic senators from Nevada, Jacky Rosen and Catherine Cortez Masto. Nevada, by the way, has the highest number of tipped workers per capita in the country. So yeah, it hits close to home for a lot of folks.
Senator Rosen actually called the bill up for a unanimous consent vote — that’s one of those procedural moves that usually gets blocked for bigger legislation. But not this time. Nobody objected. That’s how it passed. Just like that. No drama, no opposition. A rare moment of unity in the Senate, honestly.
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So what does the bill actually do? In simple terms, it allows workers who earn $160,000 or less in 2025 to claim a tax deduction of up to $25,000 on their reported cash tips . The income threshold will adjust for inflation, so it’s built to grow with the economy. But here’s the key: the tips have to be reported to your employer for payroll tax purposes. It’s not a free-for-all, but it is a huge help for the service industry — waitstaff, bartenders, delivery drivers — you name it.
This was one of Trump’s campaign promises during his 2024 run, and it looks like that message stuck. Even Senate Democrats, like Minority Leader Chuck Schumer, voiced strong support. He said it’s time working-class Americans got some tax relief instead of just billionaires — and I think a lot of people can get behind that.
What’s next? The bill heads to the House of Representatives, where Republicans are weighing whether to include it in a larger legislative package or pass it separately. Either way, the consensus is clear: it’s got the momentum to become law. And that means real money back in the pockets of people who really need it — not CEOs, not hedge fund managers — but the folks out there grinding every day and earning their living one tip at a time.
So yeah, this is big. It’s rare we see Congress come together like this, and it’s even rarer when it’s for something that directly impacts everyday working Americans in such a positive way. Let’s see what the House does, but for now, this is a big win for tipped workers across the country.
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