Sen. Ted Cruz (R-Texas) reintroduced legislation to exempt federal taxes on tips in an effort to support service industry workers.
“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 Thursday statement.
“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.”
Republicans captured working class citizens in the last election cycle, which contributed to their majority in the House and Senate. The new bill co-sponsored by Sens. Jacky Rosen (D-Nev.), Catherine Cortez Masto (D-Nev.), Steve Daines (R-Mont.), and Pete Ricketts (R-Neb.) aims to capitalize on the demographic’s support.
“This bipartisan bill will ensure tipped workers in Nevada can keep more of their hard-earned money,” Rosen said.
“I’ll also keep fighting to raise the minimum wage and eliminate the subminimum wage for service employees, lower costs, and cut taxes for all hardworking Nevadans.”
Cruz introduced similar legislation in the 118th Congress as did Rep. Byron Donalds (R-Fla.) in the House.
“For far-too-long, Washington’s 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,” Donalds stated.
“I am proud to have introduced the ‘No Tax on Tips Act’ last Congress alongside Senator Cruz (R-TX) and look forward to its swift passage in the 119th Congress. Hardworking Americans across our Southwest Florida community, the Sunshine State, and the nation deserve a government that will put them first.”
