U.S. Senator Steve Daines introduced a bill with Senator Ted Cruz (R-Texas) to exempt tips from federal income taxation, the “No Tax on Tips Act.”
“Joe Biden’s sky-high inflation has hit hardworking Americans especially hard. Providing a much-needed tax cut for working families will help offset Biden’s high prices and get people back in the workforce,”said Daines.
Read the full text of the bill HERE.
Daines recently joined Fox Business’ Mornings with Maria to discuss the bill, watch HERE.
Background:
The bill exempts “cash tips” – cash, credit and debit card charges, and checks – from federal income tax by allowing taxpayers to claim a 100 hundred percent above-the-line deduction at filing for tipped wages.
Statements of Support:
“Tipped employees are a critical part of the restaurant industry, and anything that strengthens their economic condition is a positive for them. The ‘No Tax on Tips Act’ would provide immediate tax relief for more than 2.2 million restaurant employees and their families, putting more money in their pockets at a time when we’re all feeling the squeeze of higher prices. We thank Senator Ted Cruz and Senator Steve Daines for their leadership, and look forward to working with them on this and other common-sense tax proposals that will support restaurant vitality in every community in America.” – Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association
“The 1.3 million licensed beauty professionals across the country finally feel recognized and valued. Thank you, Senator Daines, and your staff for addressing the issue of taxes on tips and recognizing the hard work of hair stylists and barbers along with many other professional beauty providers. Working mothers and minorities will be directly impacted by this legislation. We look forward to working together with the Senator and his team,” – Myra Reddy, Director of Government Affairs for the Professional Beauty Association