Senator Ted Cruz (R-TX) introduced the No Tax on Tips Act, a bill that would attempt to institute the legislation’s title nationwide. The Texas senator called his initiative a “pro-worker” piece of legislation.
The bill exempts “cash tips” – cash, credit and debit card charges, and checks – from federal income tax by allowing taxpayers to claim a 100% above-the-line deduction at filing for tipped wages, according to Sen. Cruz’s press release.
“American workers in dozens of industries depend on tipped wages to support themselves. Today, I am introducing pro-worker legislation, the No Tax on Tips Act, to ensure they get to keep all of those tips. This legislation is a common-sense pro-worker bill that will help families deal with the historic inflation caused by the Biden administration," said Sen. Cruz.
Joining Sen. Cruz, the bill is co-sponsored by Senators Rick Scott (R-FL), Steve Daines (R-MT), and Kevin Cramer (R-ND).
Sen. Scott stated, “Under Biden’s administration, families are struggling to make ends meet with 20% inflation and policies that make their lives harder. We need to take action now to lower costs for hardworking Americans and get our economy back on track. During my time as Governor of Florida, we cut taxes over 100 times to help businesses thrive and families keep more of their hard earned dollars. It’s time we do that on the federal level with our No Tax on Tips Act.”
Sen. Daines said, “Joe Biden’s sky-high inflation has hit hardworking Americans especially hard. Providing a much-needed tax cut for working families will help offset Biden’s high prices and get people back in the workforce.”
Finally, Sen. Cramer added, “President Trump is right: tips are earned by providing good service. It is simpler and more fair to let these workers keep the reward they earned rather than send it to D.C. bureaucrats. I am pleased to join Senator Cruz as a co-sponsor of the No Tax on Tips Act.”
This week, Representatives Matt Gaetz (R-FL) and Thomas Massie (R-KY) introduced their version of the bill known as the Tax-Free Tips Act. The bill exempts tips from taxable income by reclassifying them as property transferred as gifts. It would begin to apply to tips received in the months following the Act's adoption into law.
https://twitter.com/KidRock/status/1802111088755953822Moreover, a social media trend has brought hundreds of thousands of views as people have implored their servers to vote for former President Donald Trump because they believe he will end the tax on servers’ tips.
U.S. Representative and potential VP pick Byron Donalds (R-FL) retweeted a social media post from Kid Rock as he wrote on his dinner bill, “A vote for Trump is a vote for no tax on tips!!”
— KidRock (@KidRock) June 15, 2024
