Senate Unanimously Passes No Tax on Tips Act

The United States Senate unanimously approved the "No Tax on Tips Act" on May 21, 2025. This bipartisan bill, initiated by Nevada Senator Jacky Rosen, provides a tax deduction of up to \$25,000 for cash tips received by employees earning less than \$160,000 annually. The legislation fulfills a key campaign promise made by President Trump. "This is a victory for hardworking Americans," said Senator Rosen in a statement following the vote. The bill now proceeds to the House of Representatives for further consideration and a potential final vote. Its passage would offer substantial tax relief to many service industry workers.