The No Tax on Tips Act was introduced in the United States House and Senate. The bill exempts “cash tips”, which could come from cash, credit and debit cards, and checks from federal income tax by allowing working people to claim a 100% tax deduction for tipped wages.
Former President Trump said in a campaign stop in early June that is including "no tax on tips" a focus of his economic policy. Before a campaign rally in Philadelphia, Trump left a $500 tip at a restaurant and wrote "no tax on tips" on the receipt.
Senator Ted Cruz said, “American workers in dozens of industries depend on tipped wages to support themselves. The No Tax on Tips Act ensures they get to keep all of those tips. This legislation is a common-sense pro-worker bill that will help families deal with the historic inflation caused by the Biden administration.”
The bill is “more important than ever” especially since Biden "continues to push failed policies that exacerbate inflation and hurt working families," Cruz added.
The bill enjoys wide support right here in Center Moriches. “We work hard for our money and are taxed on our wages. Our tips are based on the service we give our customers and should not be taxed,” said Amy Weinhauer of Selden, a waitress at the Country Cottage Diner in Center Moriches. “Hands off our tips.”
Sean Kennedy, Executive Vice President of Public Affairs at the National Restaurant Association said, “Tipped employees are a critical part of the restaurant industry, and anything that strengthens their economic condition is a positive for them. The ‘No Tax on Tips Act’ would provide immediate tax relief for more than 2.2 million restaurant employees and their families, putting more money in their pockets at a time when we're all feeling the squeeze of higher prices.
If passed, millions of tipped workers across America such as bartenders, waiters, and beauty professionals will be able to keep more of their paychecks for their families.
“As the second highest tipped industry following restaurants, we appreciate being included in the swift actions the Senators are taking to provide relief for 1.3 million licensed beauty professionals across the United States," Myra Reddy, Director of Government Affairs, Professional Beauty Association (PBA) 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," Rep. Donalds said.
Senate sponsors of the bill include Sens. Ted Cruz (R-TX), Steve Daines (R-MT), Rick Scott (R-FL), and Kevin Cramer (R-ND). Rep. Byron Donalds (R-FL) introduced the bill in the House.