Cruz & Scott Reintroduce No Tax on Tips Act

Senator Rick Scott (R-FL) has joined Senator Ted Cruz (R-TX) in introducing the No Tax on Tips Act, a bill that attempts to institute the legislation’s title nationwide. The bill exempts “cash tips” – cash, credit and debit card charges, and checks – from federal income tax by allowing taxpayers to claim a 100% above-the-line deduction at filing for tipped wages.

The senators introduced this legislation during the 118th Congress, but in their updated version for the 119th, the bill has "guardrails" so the No Tax On Tips Act only applies to "traditionally tipped employees."

The No Tax on Tips Act was directly inspired by President-elect Donald Trump (R) as this issue was one of his most prominent campaign promises. President-elect Trump chastised Vice President Kamala Harris (D) for seemingly campaigning on this issue as well.

Sen. Cruz shared that this legislation fits what he believes to be his ideal coalition for the Republican Party: consisting of bartenders, waiters, waitresses, and other working-class people.

“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," said Sen. Cruz. "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. This pro-worker bill will deliver relief to families facing rising costs caused by the Biden administration’s inflationary policies.”

Furthermore, Sen. Scott stated that this bill follows his economic initiatives during his time as Florida Governor.

“During my time as Governor of Florida, I worked to cut taxes over 100 times to help businesses thrive, families keep more of their hard-earned dollars and turn our entire economy around," said Sen. Scott. "After four years of President Biden’s skyrocketing inflation making life harder for families, it’s about time we follow Florida’s turnaround playbook and take significant action to cut taxes with the No Tax on Tips Act. President Trump is laser-focused on getting our economy back on track, and passing this bill ASAP will be a great start.”

Senators Jacky Rosen (D-NV), Catherine Cortez Masto (D-NV), Steve Daines (R-MT) and Pete Ricketts (R-NE). Representative Vern Buchanan (R-FL) was joined by Representative Byron Donalds (R-FL) in introducing the companion legislation in the U.S. House of Representatives.