Promises Kept! No Tax on Tips Bill Passes Senate Unanimously!
Huge news out of the Senate today! The “No Tax on Tips” bill has just passed the Senate with a unanimous 100 to 0 vote. This is absolutely massive, a huge win that delivers on promises made.
The bill, which originated from an idea President Trump suggested on the campaign trail last summer in Las Vegas, stops the federal government from taxing tips. The push for this legislation in the Senate came from Nevada’s Democrat Senator Jackie Rosen, joined by Texas Republican Senator Ted Cruz. Senator Rosen highlighted that Nevada has more tipped workers per capita than any other state and that for many service and hospitality workers, tips are not just extra money but a crucial part of their income used to make ends meet. Senator Cruz stated that the bill will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers living paycheck to paycheck.
This legislation will eliminate the application of the income tax on all qualified tips. While qualified tips applied via electronic payment are easily traceable, cash tips should be reported but usually aren’t.
This bill isn’t just for Nevada; it affects the hospitality industry and anyone who gets tips. This could potentially include YouTubers and streamers who receive Super Chats, which we would assume are tips.
The “No Tax on Tips” act now heads to the House of Representatives. A companion bill, HR42, introduced by Representatives Vernon Buchanan and Byron Daniels, is already in the House but has not been voted on yet. However, it is expected to pass the House and be sent to the president’s desk to be signed into law.
This important bill was smartly broken off as a standalone piece of legislation, potentially part of getting things done instead of letting it get bogged down in larger packages. It was originally considered part of President Trump’s proposed “one big beautiful bill” which aimed to include other measures like no tax on overtime and new deductions for seniors.
While the exact date it takes effect is difficult to say, it will likely be sometime next year.
In other significant news today, President Trump and Secretary Hexath have announced the “Golden Dome” missile defense system for the United States. This state-of-the-art system will use next-generation technologies, including space-based sensors and interceptors, deployed across land, sea, and space. The design will integrate with existing defense capabilities and is planned to be fully operational before the end of the president’s term, aiming to complete the job started by Reagan 40 years ago. Canada is also expected to be part of this defense protection.
There is certainly more work to be done, but seeing key promises like eliminating the tax on tips get passed is absolutely huge. This is a win for service workers and many others across the country.
