The US senator passed a NO tax on hints on Tuesday after Nevada Sen. Jackie Rosen raised the bill for a unanimous request for consent.
“This bipartisan bill is a good idea. It has support from Democrats and Republicans, so it should be handed over as soon as possible without poison,” said Rosen, a Senate Democrat.
The bill was introduced in the Senate in January 2025 by a bipartisan group of co-sponsors, including Sen. Ted Cruz and Rosen and Nevada Sen. Katherine Cortez Masto.
There was no objection at Rosen’s request. As a result, the bill was passed.
The bipartisan bill creates a tax deduction of up to $25,000 for cash tips reported to employers by workers for payroll tax withholding.
The bill asks the U.S. Treasury Department to issue a list of occupations that traditionally receive tips within 90 days of the bill’s enactment.
The end of taxes on tips in the 2024 presidential election gained traction, with Donald Trump promoting the plan on Nevada’s campaign trail, and Kamala Harris later backing the idea.
Economists and workers advocates have criticised the law, and are concerned, encouraged the expansion of cutting-edge jobs, undermines wage growth, and affects only a small segment of around 5% of low-wage workers who received hints.
According to researchers at the Brookings Institute, 37% of all tip workers have already not paid federal income tax because they have little income.
“With these revenue floors, minimum wage floors and without seeking increases, workers are vulnerable to exploitation and inequality of the labour market that are generally harmful throughout the economy,” Senior Researcher Human Rights Watch told the Guardian in August 2024 to push forward with the Tips’ End Tax.
“That doesn’t mean workers can no longer turn over. That means tips will come on top of wage beds that guarantee them the minimum.”
