The Senate has unanimously passed the “No Tax on Tips Act,” a measure championed by Texas Senator Ted Cruz, highlighting a rare moment of bipartisan cooperation in today’s polarized political climate. The 100–0 vote underscores the broad support for legislation aimed at easing the financial burden on service industry workers.
Legislation Highlights
The bill seeks to exempt tips from federal income taxation, providing relief to millions of Americans who rely on gratuities to supplement their low base wages. This includes workers in restaurants, hotels, salons, and other service sectors, many of whom face unpredictable income that makes budgeting and financial stability challenging.
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