Senate unexpectedly passes the No Tax on Tips Act in a unanimous vote

The Republican-led Senate quickly passed the "No Tax On Tips Act," giving its official stamp of approval to an idea that has gained traction since Trump campaigned on it.

WASHINGTON — In a surprise move, the Republican-led Senate quickly passed the No Tax on Tips Act on Tuesday, giving its official stamp of approval to an idea that has gained traction since President Donald Trump campaigned on it last year.

The legislation would create a tax deduction worth up to $25,000 for tips, limited to cash tips that workers report to employers for withholding purposes on payroll taxes. The tax break would also be restricted to employees who earn $160,000 or less in 2025, an amount that will rise with inflation in coming years.

It was introduced in January by Sen. Ted Cruz, R-Texas, and a bipartisan group of co-sponsors including Nevada's two Democratic senators, Jacky Rosen and Catherine Cortez Masto.

Rosen brought the bill up in the Senate for a "unanimous consent" request Tuesday, which means any senator can block it. The process is typically used for more mundane matters, and bills are routinely called up and thwarted by objections. Consequential tax bills usually follow a more complex process. But none of the 99 other senators objected to Rosen's proposition, which led to the legislation's passing.

"Nevada has more tipped workers per capita than any other state. So this bill would mean immediate financial relief for countless hard-working families," Rosen said. "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."