Sen. Cruz’s 'No Tax on Tips' Legislation Passes Senate

WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) issued a statement following the passing of his No Tax on Tips Act in the U.S. Senate with a vote of 100-0. This bipartisan legislation will exempt tips from being subject to taxation under the federal income tax.

Sen. Cruz said, “President Trump made a promise to the American people that he would eliminate taxes on tips. In Congress, I formed a bipartisan, bicameral coalition to get that done, and in the Senate introduced the No Tax on Tips Act. Today, I went with Senator Rosen to the floor to secure Senate passage of the bill. This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck. I urge my colleagues in the House to pass this important bill and send it to the President’s desk to be signed into law.”

BACKGROUND

The bill exempts “cash tips”—cash, credit and debit card charges, and checks—from federal income tax by allowing taxpayers to claim a 100% deduction at filing for tipped wages. The updated text includes guardrails to ensure only traditionally tipped employees will benefit from No Tax on Tips.

Read the bill text here.

Sen. Cruz has consistently prioritized tax cuts and job access:

• Sen. Cruz helped enact historic tax reform in 2017, which gave a tax cut to virtually every taxpayer in America. It reduced taxes on small businesses, farmers, ranchers, and job producers, which has helped bring jobs to Texas.
• He has fought to make permanent the 2017 historic tax cuts for individuals.
• Sen. Cruz also helped pass the USMCA trade agreement, which was signed by President Trump, a decisive victory for Texas farmers, ranchers, businesses, and manufacturers.
• For his efforts to support Texas businesses large and small, Sen. Cruz received the U.S. Chamber of Commerce’s prestigious “Spirit of Enterprise” award.