Senator Introduces Tip Exemption Bill

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Here we go, folks—another example of how common sense legislation can actually benefit the people who really make America work. President-elect Donald Trump’s promise to eliminate taxes on tips for working Americans wasn’t just a catchy campaign talking point; it’s on its way to becoming a reality. And leading the charge is none other than Senator Ted Cruz, who reintroduced the “No Tax on Tips Act” this week. Finally, something out of Washington that isn’t just lip service—it’s a policy that puts service workers first.

Let’s start with the basics. Tips are voluntary. That’s right, they aren’t guaranteed income; they’re a reward for good service. Yet, for years, Uncle Sam has been swooping in to grab a piece of the pie from servers, bartenders, hairstylists, and others who rely on tips to pay their bills.

Cruz’s bill would fix this by allowing service workers to claim a 100% deduction for tips on wages up to $25,000. It’s a no-brainer: these folks work hard, often in thankless jobs, and they deserve to keep more of what they’ve earned—not hand it over to fund some bloated federal program.

Of course, critics are already wringing their hands, pointing to the national deficit as if taxing a waitress’s tips is going to plug a $2 trillion hole. Let’s be honest here. The deficit wasn’t created by waiters and bartenders. It wasn’t built on tips left in cash jars or added to checks after a good meal.

It was created by reckless government spending—ballooning entitlement programs, pork-barrel projects, and let’s not forget Biden’s inflationary policies, which are driving up costs on everything from gas to groceries. If Washington is so worried about the deficit, maybe they should take a closer look at their own spending habits instead of squeezing every last penny out of the working class.

Some naysayers argue that many tipped workers don’t earn enough to benefit from this tax cut because they’re already under the federal income tax threshold. Well, here’s a thought: just because it doesn’t benefit everyone doesn’t mean it’s not worth doing. For workers who do fall above that threshold, this bill could mean the difference between just scraping by and being able to breathe a little easier.

And let’s not ignore the fact that this bill isn’t just a win for individuals—it’s a win for small businesses too. Industry groups like the National Restaurant Association and the Professional Beauty Association have come out in full support, pointing out that this could help recruit and retain workers in industries that have been struggling to recover from the pandemic.

And how about that bipartisan support? It’s refreshing to see a couple of Democrats from Nevada, a state where the service industry plays a huge role in the economy, joining forces with Republicans to make this happen. Sens. Jacky Rosen and Catherine Cortez Masto deserve some credit for recognizing that this isn’t about partisanship; it’s about doing right by the workers who keep America running.

Critics love to frame this bill as some sort of tax giveaway, but let’s call it what it really is: a small, targeted way to give working Americans a break from an overbearing tax system. This isn’t some massive tax loophole for the wealthy; it’s a hand up for the people who serve your food, mix your drinks, and cut your hair. These are the same people who have been hit hardest by inflation and economic uncertainty, and they deserve to see a government that actually works for them for a change.

So, here’s to the bartenders, waitresses, and hairstylists who make our lives a little better every day. If all goes according to plan, come January 20 and beyond, they’ll finally get to keep more of the tips they’ve earned. And let’s not forget who’s behind this push: Trump and the Republicans who are proving once again that they’re the party of working Americans. It’s about time someone stood up for the people who’ve been left behind by years of government overreach and bad policy. Cheers to that.