President-elect Donald Trump made news on the campaign trail last year when he proposed “no tax on tips.”
Now, that pledge is likely to become reality.
Sens. Ted Cruz, R-Texas and Jacky Rosen, D-Nev., on Thursday introduced the No Tax on Tips Act along with Sens. Catherine Cortez Masto, D-Nev., Steve Daines, R-Mont., Pete Ricketts, R-Neb., and Rick Scott, R-Fla.
“American workers in many industries rely on tipped wages to make ends meet. Today, I’m introducing my bipartisan No Tax on Tips Act – legislation I authored to fulfill President Trump’s promise to end the wrongful practice of taxing voluntary tips,” Cruz said in a statement.
With bipartisan support and the president’s backing, the bill seems on its way to becoming law.
“I’ve long believed the GOP should be the party of bartenders, of waiters and waitresses, and this bill is an important step to ensure we are addressing the economic needs of working Americans,” he added. “This pro-worker bill will deliver relief to families facing rising costs caused by the Biden administration’s inflationary policies.”
In the House, Reps. Vern Buchanan, R-Fla. Byron Donalds, R-Fla, introduced companion legislation.
Rosen pointed out that her state of Nevada has the highest concentration of tipped workers.
“Nevada’s service and hospitality workers are the backbone of our economy, and they deserve financial relief at a time when they are getting squeezed by rising costs,” Rosen said in statement. “This bipartisan bill will ensure tipped workers in Nevada can keep more of their hard-earned money.
“I’ll also keep fighting to raise the minimum wage and eliminate the sub-minimum wage for service employees, lower costs, and cut taxes for all hardworking Nevadans,” she added.
