Florida Congressman Byron Donalds, along with Senator Ted Cruz, introduced the “No Tax On Tips Act” today, aiming to provide much-needed relief for tipped workers across the country. This legislation proposes a 100% above-the-line deduction for tipped wages, allowing these workers to keep more of their hard-earned income.
Donalds highlighted the economic hardships faced by many Americans, particularly those in the service industry, under the Biden administration’s policies. “Americans deserve to take home more of what they have earned,” Donalds stated, emphasizing the need to prioritize the financial well-being of hardworking individuals.
Read: Alabama, Iowa, And Idaho Lawmakers Revolt Against Biden EPA’s Electric Vehicle Mandates
“For far-too-long, Washington’s focus has been on how much of your paycheck politicians and unelected bureaucrats will take to fund their destructive agendas. Americans deserve to take home more of what they have earned, especially given the self-inflicted economic hardships created by the Biden administration,” said Donalds. “That is why Senator Cruz (R-TX) and I have introduced the ‘No Tax on Tips Act.’ Our bill allows taxpayers to claim a 100% above-the-line deduction at filing for tipped wages. Policymakers must put the needs and financial interests of hardworking Americans first.”
The restaurant and foodservice industry, a major employer in the United States, has been particularly affected by economic challenges. Since 2021, real average hourly earnings have decreased for private sector employees, while real median weekly earnings and disposable income have also declined.
The proposed legislation aims to address these challenges by allowing tipped workers to deduct their full tipped income, thus increasing their take-home pay. This would not only benefit the workers themselves but also contribute to the overall economy by boosting consumer spending.
The bill also ensures that existing IRS tip reporting programs and business tax benefits remain unaffected, maintaining a balance between worker support and employer obligations.
Read: Former Clinton Pollster Says Dems Would ‘Commit Suicide’ By Trying To Replace Biden
While the “No Tax On Tips Act” has garnered support from some lawmakers, its passage is not guaranteed. Critics may argue that the measure could lead to reduced tax revenue and potential complications in tax administration. However, supporters believe that the benefits to tipped workers and the broader economy outweigh these concerns.
As the legislative process unfolds, the fate of the “No Tax On Tips Act” remains uncertain. However, its introduction marks a significant step towards recognizing the unique challenges faced by tipped workers and providing them with much-needed financial relief.
Help support the Tampa Free Press by making any small donation by clicking here.
Android Users, Click To Download The Tampa Free Press App And Never Miss A Story. Follow Us On Facebook and Twitter. Sign up for our free newsletter.