Daijiworld Media Network - Washington

Washington, May 21: In a rare show of bipartisan consensus, the US Senate on Tuesday passed the ‘No Tax on Tips Act,’ a major legislative move that fulfills one of former President Donald Trump’s key promises made during his campaign in Nevada last year.

The Republican-led Senate approved the bill through a unanimous consent motion an expedited process that allows a bill to pass if no senator objects. The bill, introduced in January by Sen. Ted Cruz (R-Texas), is co-sponsored by a bipartisan group including Nevada’s Democratic Senators Jacky Rosen and Catherine Cortez Masto.

The legislation offers a tax deduction of up to $25,000 on cash tips reported by workers to their employers for payroll tax purposes. It will apply to workers earning up to $160,000 in 2025, with the cap adjusted for inflation in the coming years.

“Nevada has more tipped workers per capita than any other state. So this bill would mean immediate financial relief for countless hard-working families,” said Rosen, who brought the bill to the Senate floor. “I am not afraid to embrace a good idea, wherever it comes from.”

The unexpected smooth passage in the Senate contrasts with the complex route that most tax legislation follows. Its fate now rests in the House of Representatives, where Republicans may either pass it as part of a larger legislative package aligned with Trump’s policy goals or advance it separately.

Senator Cruz praised the bipartisan effort, saying, “One way or another, 'No Tax on Tips' is going to become law and give real relief to hard-working Americans.”

Even Senate minority leader Chuck Schumer (D-N Y) lauded the bill’s approval. “Working Americans from servers, to bartenders, delivery drivers, and everything in between work hard for every dollar they earn and are the ones who deserve tax relief, not the ultra-rich,” he said.

If passed by the House, the bill would mark a significant step in easing the financial burden on millions of tipped workers across the United States.