Sen. Ted Cruz’s “No Tax on Tips” plan, a concurrent campaign promise of President Donald Trump, got an unexpected boost late Tuesday when a Democratic supporter quickly got it passed through the Senate as a standalone bill.
Nevada Sen. Jacky Rosen took to the floor to speak in support of “No Tax on Tips” before lodging a unanimous consent request – a motion to pass the measure right away unless anyone present objected.
Hearing no objections, Senate presiding officer Cynthia Lummis, R-Wyo., announced the “No Tax on Tips” bill had passed.
“No Tax on Tips was one of President Trump’s key promises to the American people, which he unveiled in my state of Nevada – and I am not afraid to embrace a good idea, wherever it comes from,” Rosen said of the bill originally drafted by Cruz, R-Texas.
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Cruz’s bill, which Rosen signed onto, would exempt cash tips and card-charged gratuities from federal income tax via a 100% deduction come Tax Day.
“President Trump made a promise to the American people that he would eliminate taxes on tips. In Congress, I formed a bipartisan, bicameral coalition to get that done, and in the Senate introduced the No Tax on Tips Act,” Cruz said in a statement to Fox News Digital.
“Tuesday, I went with Senator Rosen to the floor to secure Senate passage of the bill. This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck.”
However, Rosen also stated her preference that the measure be approved separately from House Republicans’ “big, beautiful budget bill,” which she in turn criticized.
Rosen called the House’s version rife with “poison pill[s]” that she said will cut Medicaid, SNAP and other funding and “give more tax breaks for billionaires and the ultra-wealthy.”
In turn, Rosen said her plan includes “strong guardrails” against business executives potentially exploiting “loopholes” in the new, tax-free income of their employees.
“I agreed we need to get this done. It’s not a time for politics, it’s a time for progress for hard-working Americans,” Rosen added in her floor remarks.
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A spokesperson for Rosen told Fox News Digital the senator was outraged at Republicans for “playing politics” by adding the standalone bill to their larger budget framework.
“Our office ran a hotline on both sides of the aisle and, after seeing no objections, Senator Rosen went to the floor to pass this bipartisan bill by itself and without any poison pills,” the spokesperson said.
“In doing so, Senate Democrats are showing we can deliver tax relief for working-class families without Republicans’ extreme cuts to Medicaid and SNAP.”
After Lummis declared the bill passed “without objection,” Rosen called it “great news for Nevada.”
“Our hospitality and service staff – they’re working harder than ever while being squeezed by rising costs. And this bill, it’s not the be-all end-all, but it’s going to offer immediate financial relief while the Senate continues to work to lower costs and find other avenues of relief for hard-working families,” she said.
In terms of the House’s consideration, Cruz said that the lower chamber should quickly pass their version and send it to Trump for his signature.
Trump announced his plan from the Silver State to end taxation on gratuities just before then-Democratic presidential nominee Kamala Harris did.
Nevada’s gaming and hospitality industry is one of, if not the nation’s largest per-capita in terms of employment – and Fox News Digital spoke at the time with rideshare drivers at the MGM Grand, who were overjoyed that attention was finally drawn to the idea.
One driver, who said he was a registered Democrat, commented that he would be switching his vote to Trump because of how important the issue was to him.
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