Washington, D.C.— Today, Senator Cynthia Lummis (R-WY) issued the following statement after the unanimous passage of the No Tax on Tips Act, a proposal originally made by President Trump. This bipartisan legislation will exempt tips from being subject to taxation under the federal income tax.
“The Senate passage today of President Trump’s No Tax on Tips proposal is a victory for Wyoming’s blue-collar workers who will now keep every dollar they earn in tips. I support this common-sense tax relief that puts more money into the hands of Wyoming workers while upholding the conservative principle of rewarding hard work.”
Background:
- The legislation was introduced by Senator Cruz (R-TX) and Senator Jacky Rosen (D-NV).
- The bill exempts “cash tips”- cash, credit and debit card charges, and checks – from federal income tax by allowing taxpayers to claim a 100% deduction at filing for tipped wages. The updated text includes guardrails to ensure only traditionally tipped employees will benefit from No Tax on Tips.