The Senate unanimously passed a bill on Tuesday to eliminate federal taxes on tips, delivering a major win for service industry workers and advancing one of President Trump’s key campaign promises.
Sen. Jacky Rosen of Nevada, a Democrat, introduced the bill expecting it to be blocked. But in a surprise move, Sen. Ted Cruz of Texas allowed the measure to advance, leading to its approval by unanimous consent.
Rosen celebrated the outcome, calling it “great news for Nevada,” a state with one of the highest percentages of tipped workers in the country. She praised the hospitality and service workers who rely heavily on tips and noted that many are struggling with the rising cost of living.
“This bill is not the be-all, end-all, but it’s going to offer immediate financial relief,” Rosen said, adding that it’s a step toward broader efforts to help working families and reduce everyday costs.
The idea to eliminate taxes on tips was first floated by Trump during a campaign stop in Nevada last year, aimed at boosting take-home pay for millions of workers in the hospitality sector.
Cruz, in his remarks on the floor, backed Rosen’s proposal and highlighted that around 25 percent of Nevada’s workforce relies on tips. Rosen added that her state leads the nation in tipped workers per capita.
“Nevadans, our families, are being squeezed, and we need real relief,” Rosen said. “For many service and hospitality workers, tips aren’t a bonus they’re essential income used to pay the bills.”
Leave a Reply
You must be logged in to post a comment.