In a stunning show of bipartisan cooperation, the U.S. Senate has achieved a remarkable consensus by passing the “No Tax on Tips” Act, a key promise of President Trump’s campaign.
Republican Senator Ted Cruz and Democrat Senator Jacky Rosen passed the law without a single objection.
This victory for hardworking Americans now heads to the House, where further action will determine whether millions of service workers can finally keep every dollar they earn.
The Senate’s unanimous passage of the No Tax on Tips Act passage marks a significant win for President Trump’s economic agenda.
The bill, which eliminates federal income tax on tips for workers earning less than $160,000 annually, fulfills one of Trump’s key campaign pledges designed to provide immediate relief to Americans.
This achievement shows how common-sense policies that benefit everyday citizens can still overcome partisan barriers even in today’s divided political climate.
Senator Ted Cruz (R-TX), who introduced the original legislation, called the unexpected passage a victory for working Americans and credited Trump’s vision. He stated:
“Whether it passes free-standing or as part of the bigger bill, one way or another, ‘No Tax on Tips’ is going to become law and give real relief to hard-working Americans. So I’m proud of what the Senate just did, and I commend Democrats and Republicans, even at a time of partisan division, coming together and agreeing on this commonsense policy.”
“This is political genius,” Cruz remarked. “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.”
In a rare moment of bipartisan acknowledgment, Senator Jacky Rosen (D-NV) openly credited President Trump for the idea.
“No tax on tips was one of President Trump’s key promises to the American people, which he unveiled in my state of Nevada. And, I am not afraid to embrace a good idea, wherever it comes from,” Rosen stated.
Her admission validates what conservatives have long argued – that Trump’s economic policies are designed to benefit working Americans regardless of political affiliation, forcing even Democrats to recognize their effectiveness.
Unlike many Democrat-backed tax plans that primarily benefit coastal elites, this legislation provides targeted relief to service workers across America.
The bill offers a tax deduction of up to $25,000 for cash tips reported to employers, benefiting waitresses, bartenders, hotel workers, and other service industry employees who form the backbone of communities nationwide.
With about 25% of Nevada’s workforce relying on tips, states with large hospitality sectors stand to see immediate economic benefits as workers keep more of their hard-earned money.
The Senate on Tuesday passed a bill that would eliminate federal taxes on tips, advancing with the help of Democrats a top campaign promise of President Trump. Sen. Jacky Rosen (D-Nev.) brought the… https://t.co/Is7Wxc51Ct
— NewsNation (@NewsNation) May 20, 2025
Moreover, the bill’s provisions ensure that the tax relief specifically targets working Americans, not wealthy executives.
By limiting eligibility to those earning $160,000 or less annually (with adjustments for inflation), the legislation exemplifies the conservative principle of providing tax relief to those who need it most while maintaining fiscal responsibility.
This approach starkly contrasts with many Democrat-backed spending plans, which claim to help workers while benefiting their wealthy donors.
With the Senate hurdle cleared, attention now turns to the House of Representatives, where Republican leadership must decide whether to pass the bill as a standalone measure or incorporate it into a larger tax package.
The unexpected unanimous consent in the Senate demonstrates the bill’s broad appeal and gives House Republicans significant momentum to advance it.
If passed, this bill would represent one of the most tangible economic victories for working-class Americans in recent memory.
The surprising Senate vote also highlights the effectiveness of President Trump’s agenda in setting the national economic conversation.
By championing policies that directly benefit working Americans rather than coastal elites, Trump has forced Democrats into a position where they must support his ideas or risk appearing opposed to obvious financial relief for the service workers they claim to represent.
This strategic victory showcases why Trump’s economic vision continues to resonate with millions of hardworking Americans.
