Texas Border Business
WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas), joined by Sens. Steve Daines (R-Mont.), Rick Scott (R-Fla.), and Kevin Cramer (R-N.D.), introduced the No Tax on Tips Act to exempt tips from being subject to taxation under the federal income tax. Rep. Byron Donalds (R-Fla.-19) introduced companion legislation in the U.S. House of Representatives alongside Derrick van Orden (R-Wis.-3).
Upon the House introduction, Sen. Cruz said, “I am proud to partner with Rep. Donalds to champion the No Tax on Tips Act. This common-sense, pro-worker legislation allows millions of tipped workers—including bartenders, waiters, and beauty professionals—to keep more of their hard-earned paycheck. Our legislation is more important than ever, as President Biden continues to push failed policies that exacerbate inflation and hurt working families. I call on the Senate and House to expeditiously pass this legislation, and look forward to working with Rep. Donalds to expeditiously pass into law.”
Rep. Donalds said, “For far too long, Washington’s focus has been on how much of your paycheck politicians and unelected bureaucrats will take to fund their destructive agendas. Americans deserve to take home more of what they have earned, especially given the self-inflicted economic hardships created by the Biden administration. That is why Senator Cruz and I have introduced the ‘No Tax on Tips Act.’ Our bill allows taxpayers to claim a 100% above-the-line deduction at filing for tipped wages. Policymakers must put the needs and financial interests of hardworking Americans first.”
BACKGROUND:
The bill exempts “cash tips”—cash, credit and debit card charges, and checks—from federal income tax by allowing taxpayers to claim a 100% above-the-line deduction at filing for tipped wages.
Read the bill text here.
Sen. Cruz has consistently prioritized making sure American taxpayers keep their hard-earned income and Texans have access to jobs.
- Sen. Cruz helped enact historic tax reform in 2017, which gave a tax cut to virtually every taxpayer in America. It reduced taxes on small businesses, farmers, ranchers, and job producers, which has helped bring jobs to Texas.
- He has fought to make permanent the 2017 historic tax cuts for individuals.
- Sen. Cruz also helped pass the USMCA trade agreement, which was signed by President Trump, a decisive victory for Texas farmers, ranchers, businesses, and manufacturers.
- For his efforts to support Texas businesses large and small, Sen. Cruz received the U.S. Chamber of Commerce’s prestigious “Spirit of Enterprise” award.
