Remove federal income tax on tips

In June 2024, Cruz proposed letting tipped workers deduct their tips from federal income tax. His No Tax on Tips Act would cover tips paid in cash, by credit or debit card, and by check. Workers would claim a deduction for those tips when filing their taxes, allowing them to keep more of their tipped earnings.

Context: Congressional proposal announced June 20, 2024, while Cruz was serving. This source does not establish that it was a promise in his reelection platform. It describes a proposed federal income-tax deduction, not an exemption from every kind of tax.

In their own words

Today, I am introducing pro-worker legislation, the No Tax on Tips Act

The source

Ted Cruz: June 20, 2024 No Tax on Tips proposal ↗

Published: 6/20/2024
Retrieved: 11/11/2026