Sen. Ted Cruz, R-Texas, on Thursday introduced legislation that would exempt tips from the federal income tax.
The text of the "No Tax on Tips Act" was obtained exclusively by FOX Business, days after the Texas Republican announced his plans to file it this week on "Sunday Morning Futures." The bill is co-sponsored by fellow Republican Sens. Steve Daines of Montana, Rick Scott of Florida and Kevin Cramer of North Dakota.
"American workers in dozens of industries depend on tipped wages to support themselves," Cruz said in a statement. "Today, I am introducing pro-worker legislation, the No Tax on Tips Act, to ensure they get to keep all of those tips. This legislation is a common-sense, pro-worker bill that will help families deal with the historic inflation caused by the Biden administration."
Daines, in his own statement, said: "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."
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