The unanimous Senate approval of the “No Tax on Tips Act,” championed by Texas Senator Ted Cruz, marks a rare moment of unity in an era of deep political division. The 100–0 vote stands out as one of the clearest examples of bipartisan cooperation in recent years.

The bill represents a significant legislative win for former President Donald Trump as well. During his 2024 campaign, he promoted the idea of eliminating federal income taxes on tips, framing it as a direct way to help working-class Americans. The Senate’s action brings that promise closer to reality.

At its core, the legislation seeks to exempt tips from federal income taxation, targeting a sector of the workforce that often faces financial instability. Millions of Americans working in restaurants, hotels, salons, and other service roles depend heavily on gratuities to supplement low base wages.

These workers typically experience unpredictable earnings, making it difficult to budget or build financial security. Supporters of the bill argue that taxing such inconsistent income places an unfair burden on workers who already struggle to make ends meet.

Senator Cruz has been vocal about these concerns. He emphasized that many tipped employees live paycheck to paycheck and face higher effective tax pressures because their base wages are often too low to provide stability. Removing federal taxes on tips, he argued, would give these workers immediate and meaningful relief.

The measure’s bipartisan appeal stems from its focus on a simple, real-world issue. Lawmakers from both parties recognize that millions of families rely on tipped income and that reducing taxes on those earnings could have a direct impact on household budgets.

Critics of the current system note that the government benefits from income that customers give voluntarily, not wages guaranteed by employers. Supporters of the new legislation view this as an outdated approach that no longer reflects the realities of the modern service economy.

The Senate’s unanimous vote signals that, even in a polarized political climate, certain economic issues still have the power to unite lawmakers across the aisle.