Fulfilling one of President Trump’s key campaign promises, Senate Republicans and Democrats have united to pass a popular tax law, delivering a historic victory for American workers.
The bill, which sailed through the Senate with unanimous consent, will eliminate federal taxes on tips for service workers earning under $160,000.
See the video below.
The bipartisan measure now heads to the House, where passage could put more money in the pockets of millions of hardworking Americans.
The legislation, introduced by Senator Ted Cruz (R-TX) and brought to the floor by Senator Jacky Rosen (D-NV), creates a tax deduction of up to $25,000 for cash tips reported to employers.
This tax relief specifically targets service industry workers like waiters, bartenders, and delivery drivers rather than wealthy CEOs or corporate executives.
Senator Cruz celebrated the passage as a fulfillment of President Trump’s vision for helping working-class Americans.
“Here’s the good news: With what we just saw now, the certainty that we will see no tax on tips become the law of the land, I think, is very close to 100 percent,” Cruz stated after the bill cleared the Senate.
Many political observers were surprised by the law’s swift approval through unanimous consent, as this procedural move is typically reserved for non-controversial measures.
The bipartisan support demonstrates rare agreement in today’s divided political landscape, particularly on a tax policy that originated from President Trump’s campaign platform.
“No tax on tips was one of President Trump’s key promises to the American people, which he unveiled in my state of Nevada. And, I am not afraid to embrace a good idea, wherever it comes from,” said Senator Rosen.
Furthermore, Nevada stands to benefit tremendously from the legislation. It has more tipped workers per capita than any other state, and approximately 25% of its workforce relies on tips for income.
Senator Rosen emphasized the legislation’s immediate impact on her constituents:
“This bill is not the be-all and end-all, but it’s going to offer immediate financial relief while the Senate continues to work to lower costs and find other avenues of relief for hardworking families.”
The legislation includes important guardrails to ensure the tax relief reaches those who truly need it.
The deduction is limited to employees earning $160,000 or less in 2025, and it will be adjusted for inflation in subsequent years.
This prevents wealthy executives from exploiting the tax break while delivering meaningful relief to service industry workers struggling with rising costs under the Biden-Harris economy.
The House of Representatives will now consider the legislation, which could be passed as a standalone bill or as part of a larger tax package.
The path to President Trump’s desk appears clear, and the Senate has already demonstrated strong bipartisan support.
If signed into law, the No Tax on Tips Act would represent a significant legislative victory for President Trump’s economic vision.
For millions of American service workers who have watched their hard-earned tips eaten away by federal taxes, this legislation offers real financial relief at a time when inflation continues to strain household budgets.
The bill’s passage proves that bipartisan solutions are still possible in Washington when Congress focuses on common-sense policies that help working Americans rather than coastal elites.
President Trump made a promise to the American people that he would eliminate taxes on tips.
Today, I went with Senator Rosen to the floor to secure Senate passage of the bill.
I urge my colleagues in the House to pass this important bill and send it to the President’s… pic.twitter.com/4vqk1uEzVB
— Senator Ted Cruz (@SenTedCruz) May 20, 2025
