Central Montana Times

U.S. Senator Steve Daines has introduced a bill, in collaboration with Senator Ted Cruz (R-Texas), aimed at exempting tips from federal income taxation. The proposed legislation, titled the "No Tax on Tips Act," seeks to alleviate the financial burden on service workers by allowing them to claim a 100 percent above-the-line deduction for tipped wages during tax filing.

“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.

The bill covers "cash tips," including cash, credit and debit card charges, and checks. It aims to provide immediate tax relief for more than 2.2 million restaurant employees and their families.

Sean Kennedy, Executive Vice President of Public Affairs at the National Restaurant Association, expressed 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.”

Myra Reddy, Director of Government Affairs for the Professional Beauty Association, also voiced her approval: “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.”