President Trump: Promises Made, Promises Kept “No Tax On Tips” Clears Senate

May 21

By The Blog Source

The Senate overwhelmingly agreed Tuesday to remove federal taxes on tip revenue, fulfilling a major campaign pledge made by President Trump in a rare display of bipartisanship.

Sen. Ted Cruz of Texas introduced the No Taxes on Tips Act, which was approved by unanimous consent on Tuesday. This process is rarely effective for significant tax reform.

The bill's co-sponsor, Senator Jacky Rosen of Nevada, spearheaded the Democratic side's push, stating that she was honored to back a plan "that puts more money in working people's pockets."

Trump initially suggested doing away with federal tip taxes during a rally in 2024 in Nevada, a state that employs many in the hotel industry. It is anticipated that the plan would be included in a larger GOP tax and policy package.

Legislation to abolish federal income taxes on gratuities was unanimously approved by the Senate on Tuesday, fulfilling one of President Donald Trump's campaign promises and indicating uncommon bipartisan collaboration on a significant tax reform proposal.

Texas Senator Ted Cruz wrote the legislation, which was submitted earlier this year and was named the No Taxes on Tips Act. When Trump first proposed the notion at a campaign stop in Nevada in 2024, he emphasized that workers in the service sector need to be able to keep all of their earnings. The idea acquired popularity quite fast, even among Democrats.

Sen. Jacky Rosen of Nevada helped the bill pass by obtaining a unanimous consent agreement, which permits legislation to move quickly as long as no senator objects on the floor. Such a move stunned many political watchers because it is uncommon for major changes to tax policy.

During remarks on the Senate floor, Rosen stated that one of President Trump's main pledges to the American people was "no taxes on tips." "And I don't hesitate to accept a good idea no matter where it originates."

Cruz agreed, expressing gratitude to both parties for their cooperation in assisting service industry workers. He declared, "I'm proud of what the Senate just did." "Seeing Republicans and Democrats agree on a common-sense policy is encouraging, even in a time of partisan division."

In a Congress that is otherwise polarized, the bill's passing represents a rare moment of agreement. It is now anticipated to be part of a broader package led by Republicans that includes energy changes, border security spending, and further tax cuts.

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