Buchanan, Donalds Introduce New No Tax on Tips Bill

Representatives Vern Buchanan (R-FL) and Byron Donalds (R-FL) have introduced new legislation removing taxes from income received through tips.

Aptly named the "No Tax on Tips" Act, the bill allows for up to $25,000 in qualified tips to be deducted from income taxes and is reserved strictly for people working in traditionally tip-based jobs like waiters, beauticians, and hospitality workers.

President-elect Donald Trump had talked about removing income tax from tips on the campaign trail, prompting several Florida lawmakers, including Rep. Donalds, Senator Rick Scott (R-FL), and former Representative Matt Gaetz (R-FL), to introduce legislation in June and July to get the ball rolling.

In his press release, Rep. Buchanan said the bill would be of tremendous help to many Florida workers as a tourism-heavy state. That was why he introduced the No Tax on Tips Act, adding it was "to ensure that these essential workers are able to keep more of the money they've earned, without interference from Washington."

"As Vice Chairman of the House Ways and Means Committee and a former Chairman of the Tax Subcommittee, cutting taxes for working Americans is my top priority," the Florida Congressman continued.

Rep. Donalds similarly blasted Washington, saying its "focus has been on how much of your paycheck politicians and unelected bureaucrats will take to fund their destructive agendas."

"Americans deserve to take home more of what they have earned, especially given the self-inflicted economic hardships created by the Biden administration," Rep. Donalds added, further saying, "Hardworking Americans across our Southwest Florida community, the Sunshine State, and the nation deserve a government that will put them first."

Senator Ted Cruz (R-TX), who is introducing the Senate version of the bill, said, "American workers in many industries rely on tipped wages to make ends meet," and suggested the Republican Party "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."