The idea of exempting tips from federal income taxes, long considered a pipe dream for hardworking Americans, is gaining bipartisan momentum thanks to a proposal led by Nevada Senators Catherine Cortez Masto and Jacky Rosen, along with Republican Senator Ted Cruz. The “No Tax on Tips Act” is being reintroduced in Congress, signaling hope for service industry workers nationwide.

This legislation, aimed at giving tipped workers a much-needed break, would ensure that gratuities—traditionally earned by service and hospitality employees—are no longer subject to federal income tax. Nevada, with its robust tourism and hospitality economy, stands to benefit significantly. The state boasts more tipped workers per capita than anywhere else in the nation.

“Working families in Nevada deserve a break,” Cortez Masto stated. “This bipartisan bill will put more money in their pockets.” She emphasized that this initiative is part of her broader effort to lower costs and deliver meaningful relief to Nevadans.

Rosen echoed this sentiment, saying, “Nevada’s service and hospitality workers are the backbone of our economy. They deserve financial relief at a time when rising costs are squeezing their wallets.” Rosen also reiterated her commitment to fighting for higher wages and eliminating the sub-minimum wage for service employees, alongside cutting taxes for all hardworking Americans.

Interestingly, President-elect Donald Trump floated this very idea during a campaign rally in Las Vegas last summer, cementing its bipartisan appeal. Republican Senator Ted Cruz’s support further solidifies the measure’s potential to cross party lines and deliver real results for everyday Americans.

The proposal also received praise from Ted Pappageorge, secretary-treasurer of the Culinary Union. “Eliminating taxes on tips is a first step, but we must also raise the sub-minimum wage and address corporate greed driving up costs for essentials like food, gas, and housing,” Pappageorge said. “Congress needs to act now.”

With new safeguards to ensure that only traditionally tipped employees benefit, the bill appears to have a stronger foundation this time around. However, the timeline for its advancement remains unclear.

This initiative is more than just tax relief—it’s about fairness. Service industry workers often rely on tips to make ends meet, yet they are taxed on these earnings while corporations continue to enjoy massive loopholes. This bipartisan push signals that lawmakers may finally be prioritizing the real concerns of hardworking Americans.

If enacted, the No Tax on Tips Act would mark a significant victory for Nevada’s economy and its people, offering relief to those who keep the service and hospitality industries thriving.

Source: 8 News Now