The No Tax on Tips Act was passed in the Senate on Tuesday after being co-sponsored by Sen. Ted Cruz (R-TX), chairman of the Senate Commerce Committee, and Sen. Jacky Rosen (D-NV).
The bipartisan bill was passed when Rosen brought the bill up for unanimous consent, or automatic approval as long as no member objected.
What is the plan, and where did it come from?
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The promise was first pitched by Trump at a Nevada campaign stop in June 2024 and quickly gained bipartisan support. Nevada has one of the highest populations of service workers in the United States. According to the Tax Policy Center, 5% of Nevadans are tipped workers.
The proposed legislation would add to the Internal Revenue Code of 1986 that certain tipped
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