In a rare show of bipartisan unity, the U.S. Senate has passed the “No Tax on Tips Act” — a bill introduced by Texas Senator Ted Cruz — aimed at providing long-overdue financial relief to millions of service industry workers.
The legislation, which passed unanimously, would make tips exempt from federal income tax, directly benefiting workers like waiters, bartenders, delivery drivers, and hotel staff — those who rely on gratuities to make ends meet.
A Boost for the Working Class
Senator Cruz hailed the bill as a major win for working Americans.
“This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers,” Cruz said. “These are the very people who are living paycheck-to-paycheck.”
He emphasized that tipped workers often face inconsistent income and long hours, and that removing federal taxes on tips would help them keep more of what they earn.
For Cruz, the bill is not just about tax policy — it’s about fairness.
