Pirate's Cove

Winning: Senate Unanimously Approves “No Taxes On Tips”

May 21, 2025 – 7:00 am

Another win for The Donald. I wonder, though, will this lead to people asking for more tips

Senate votes unanimously to eliminate federal taxes on tips

The Senate voted unanimously Tuesday to pass legislation that would eliminate the collection of federal taxes on tips, moving a step closer to fulfilling one of President Donald Trump’s key campaign promises.

Sen. Ted Cruz (R-Texas) introduced the No Taxes on Tips Act earlier this year. Trump floated the proposal while stumping in Nevada during his 2024 presidential campaign, and the idea was quickly embraced by Democrats, too, including former Vice President and presidential contender Kamala Harris.

Democrats helped push the bill over the finish line Tuesday in a surprise move led by Sen. Jacky Rosen (D-Nev.), one of the measure’s co-sponsors. Republicans allowed Rosen to advance the bill through a unanimous consent agreement, where any lawmaker can go to the Senate floor and seek passage of legislation as long as no other senator lodges an in-person objection at that same time. Unanimous consent success rates are not high for major changes to the tax code, and the maneuver Tuesday took political observers by surprise.

“‘No taxes on tips’ was one of President Trump’s key promises to the American people,” Rosen said on the Senate floor. “And I am not afraid to embrace a good idea wherever it comes from. “

At this point, the legislation goes to the House, where there is supposed to be a late Wednesday vote. Will Mike Johnson go for unanimous consent first? Which would mean a full on vote? Will anyone object if they try unanimous consent? And would they most likely be part of The Squad? If a full vote, will anyone vote against something that really everyone agrees on? It’s not like this is a big deal for most (especially when lots of tips are hidden from taxation), but, it can certainly help a lot who do their business based on tips.

Share this:

• Tweet
• Email
• Pocket

If you liked my post, feel free to subscribe to my rss feeds.

This entry was written by William Teach and posted on at 7:00 am and filed under Economy. Bookmark the permalink. Follow any comments here with the RSS feed for this post.

Post a Comment or Leave a Trackback

4 Responses to “Winning: Senate Unanimously Approves “No Taxes On Tips””

1. Dana says:

   May 21, 2025 at 8:20 am

   It’s actually a sneaky back door into more government control: diners will be more likely to use debit cards rather than pay cash, so the Feds will know where they spend their money.

   In Europe, waiters — and most them are waiters, not waitresses — are paid more, and tipping is leaving a few euro coins on the table. In the US, where servers are paid far less and depend on tips, most waiters are waitresses, depending on their looks to generate higher tips. In a nod to the late, great Rush Limbaugh’s statement that feminism was created to allow unattractive women access to the workplace, a strong tipping culture, 20% and even more, metastasized toward unattractive waitresses, and even waiters, making more in tips.

   Greatly disappointing to me, since we frequently watch European bike races, they’ve gone from two eye candy women standing next to the winners on stage, to now one gorgeous girl and one male model. And, in some races, we’re not getting any eye candy at all.

   Reply
2. Andrew says:

   May 21, 2025 at 8:35 am

   I want no taxes on anything, i know that won’t happen but i’d like no taxes on my SS

   Reply
3. Aliassmithsmith says:

   May 21, 2025 at 8:46 am

   This tax loss will not significantly add to the Donald’s proposed 4 trillions budget deficit
   Mr Teach is only a deficit hawk when Dems are in the White House Like logging the cost of Air Force 1 costs only Dems should be held accountable
   Trump is THE KING OF DEBT

   AND OOOPPSiE! That promised 5000? Stimulus check from the DOGE savings????
   Surprised? Sorry no check

   Reply
4. Elwood P. Dowd says:

   May 21, 2025 at 9:03 am

   Servers are paid full minimum wage instead of a tipped minimum wage in: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. These states have eliminated the subminimum wage for tipped employees, meaning employers must pay the full state minimum wage regardless of tips. Restaurants in those states are still in business.

   The sub-minimum wage for servers is a vestige of U.S. slavery. Surprise! Restaurateurs did not want to pay black workers.

   After the Civil War, white business owners, still eager to find ways to steal Black labor, created the idea that tips would replace wages. Tipping had originated in Europe as “noblesse oblige,” a practice among aristocrats to show favor to servants. But when the idea came to the United States, restaurant corporations mutated the idea of tips from being bonuses provided by aristocrats to their servants to becoming the only source of income for Black workers they did not want to pay. The Pullman Company tried to get away with it too, but the Black porters, under the leadership of A. Philip Randolph, formed the nation’s first Black union to be affiliated with the American Federation of Labor and fought and won higher wages with tips on top.

   No wonder white conservtives oppose unions! Do they hate teacher’s unions because most elementary school teachers are white and black women?

   Restaurant workers, however — who were mostly women — were not so fortunate. The unjust concept of tips as wages remained in place for them. And in 1938, when Franklin Roosevelt signed the nation’s first minimum wage into law, it excluded restaurant workers, a category that included a disproportionate number of Black people.

   Rather than the “stunt” of dropping taxes on tips, let’s phase out the sub-minimum wage. The National Restaurant Association spends millions lobbying Congress to prevent this.

   Reply