Overview

• The Senate passed the 'No Tax on Tips Act' by unanimous consent, marking a rare bipartisan agreement on substantive tax legislation.
• The bill allows tipped workers earning under $160,000 annually to deduct up to $25,000 in reported cash tips from federal income taxes.
• Introduced by Sen. Ted Cruz and brought to the floor by Sen. Jacky Rosen, the legislation now moves to the House for consideration.
• House Republicans have included a version of the bill in a broader spending package, sparking opposition from Nevada Democrats over unrelated cuts to Medicaid and food assistance.
• The Congressional Budget Office has yet to score the standalone bill, while the House version is projected to cost $40 billion over four years.