by Emmitt Barry, Worthy News Correspondent
(Worthy News) – In a rare show of unanimous support, the U.S. Senate has passed the “No Tax on Tips Act,” a bipartisan measure that would exempt up to $25,000 in reported tip income from federal taxes for employees in customarily tipped occupations such as servers, bartenders, and beauty professionals.
The legislation, championed by Sen. Ted Cruz (R-Texas) and co-sponsored by Sens. Jacky Rosen and Catherine Cortez Masto, both Democrats from Nevada, now heads to the House of Representatives. Lawmakers say the bill would directly benefit an estimated 4 million tipped workers in the U.S.
Under the proposed law, the deduction would apply only to workers earning under $160,000 annually and to tips that are reported to employers for payroll tax withholding. It would cover tips received via cash, card, or check.
“This bill protects the hard-earned income of millions of blue-collar Americans who live paycheck-to-paycheck,” Cruz said, urging the House to quickly advance the legislation to President Donald Trump’s desk.
The proposal echoes one of Trump’s key campaign promises, first announced during a rally in Las Vegas. A broader version of the measure is also embedded in his “One Big Beautiful Bill Act,” a sweeping $4 trillion tax cut and spending overhaul that includes cuts to Medicaid and climate initiatives while boosting border security funding.
Despite wide support, concerns have been raised about pairing the tip tax cut with other controversial provisions. Sen. Rosen urged Congress to pass the bipartisan bill as a standalone measure, warning that “working families shouldn’t have to choose between their health care and their tips.”
Budget experts estimate the bill would cost $110 billion in lost federal revenue over the next decade. Still, proponents argue the relief is overdue for a workforce disproportionately young, low-income, and reliant on gratuities.
Copyright 1999-2025 Worthy News. This article was originally published on Worthy News and was reproduced with permission.
Latest News from Worthy News
Hungarian Prime Minister Viktor Orbán’s government is growing increasingly anxious about the European Union’s planned “Article 7 procedure,” which could lead to Hungary’s voting rights being suspended over rule-of-law violations, an investigative newsletter reported Friday.
At least tens of thousands of China’s ethnic Uyghurs have been forcibly moved to factories far from their homes in the western region of Xinjiang, a new investigation revealed.
Voters in Poland prepare to choose a new president Sunday in a runoff that is closely watched by the European Union and the United States. Opinion polls predict a close race between a liberal pro-European candidate and a right-wing Euroskeptic.
Communist-ruled Cuba has extended its “repression” of religious and faith groups, including devout Christians, in almost every area, according to a new report released Thursday.
The mayor of the Dutch central city of Barneveld says he has received threats after pro-Palestinian protesters attacked a “Christians for Israel” event.
U.S. Middle East Envoy Steve Witkoff has presented a revised proposal aimed at securing a temporary ceasefire in Gaza and the release of hostages, sources told The Jerusalem Post. The proposal includes the release of 28 hostages—10 alive and 18 deceased—over two rounds, alongside a 60-day ceasefire and the withdrawal of IDF troops from recently captured areas in the Strip.
A U.S. federal judge on Wednesday temporarily blocked the Trump administration from halting Biden-era humanitarian parole programs that have allowed hundreds of thousands of migrants from Ukraine, Afghanistan, and Latin America to enter and remain in the United States.