Senate unanimously passes bill eliminating federal taxes on tips

The Senate on Tuesday unanimously approved legislation that eliminates federal taxes on tips, fulfilling one of President Donald Trump's campaign promises with bipartisan support.

Trump first proposed eliminating taxes on tips last June, which was later echoed by his opponent, former Vice President Kamala Harris, during her own presidential campaign in August. Both made the commitments during campaign stops in Nevada.

Nevada Democratic Sen. Jacky Rosen introduced the bill on the Senate floor, despite expecting it to be blocked by Texas Republican Sen. Ted Cruz. 

The legislation was first introduced by Cruz and Rosen in January, along with senators from Nebraska and North Dakota.

“I just want to say: This is great news for Nevada,” Rosen said after the vote, per The Hill. “This bill is not the be-all, 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 hard-working families."

Rosen emphasized the needs of her constituents to pass the legislation, because a lot of Nevadan service and hospitality workers rely on tips to pay their bills. 

The legislation will now go to the House, where it is expected to pass as either part of a large reconciliation package or as a separate stand-alone bill. 

“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 said. “One way or another, no tax on tips is going to become law.” 

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.