The unanimous Senate approval of the “No Tax on Tips Act,” championed by Texas Republican Senator Ted Cruz, represents a striking moment of bipartisan agreement in an increasingly polarized Congress.
The 100–0 vote not only signals rare unity in Washington but also marks a meaningful legislative victory for former President Donald Trump, who had elevated the proposal as a signature promise during his 2024 campaign. By exempting tips from federal income taxation, the legislation directly targets a segment of the workforce that often experiences the most financial instability:
employees in service and hospitality roles whose earnings fluctuate unpredictably and are frequently dependent on the generosity of customers rather than employer-guaranteed wages. The bill’s appeal stretches across political and demographic lines because it addresses a tangible, everyday economic issue experienced by millions of Americans. In presenting the measure, Cruz emphasized that tipped workers often live paycheck to paycheck and face disproportionate tax burdens relative to their base wages. He argued that the existing tax structure punishes workers for income they may not reliably receive and that the federal government should not claim a share of earnings that are, by nature, voluntary contributions from patrons.