Sen. Ted Cruz announced that the Senate unanimously passed his “No Tax on Tips Act,” a key promise from Donald Trump. The bill removes federal income tax on tips like cash, credit, and debit payments—giving millions of tipped workers a big break.
Cruz said the law protects paycheck-to-paycheck families and urged the House to pass it next. The bill includes safeguards to ensure only tipped workers qualify and limits high-income earners from claiming it.
The House version had no cap, but the Senate plan allows deductions up to $25,000. If passed, the tax break would apply from 2025 to 2028.
Even some top Democrats are backing the bill. Now it heads to the GOP-led House for final approval
