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Ted Cruz Puts Forth GAME-CHANGING Bill For Service Industry…

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June 24, 2024

Cathy Sagle

By Lisa Pelgin | Sunday, 23 June 2024 04:10 PM

In a move that echoes the sentiments of former President Donald Trump, Texas Republican Senator Ted Cruz has taken the initiative to introduce a bill aimed at preventing the Internal Revenue Service (IRS) from taxing the income of service workers earned through tips.

This information was made public via a news release on Cruz's official website, as reported by Gateway Pundit.

At a recent rally in Las Vegas, Trump expressed his opposition to taxes on tips, a stance that Cruz seems to be championing. "For those hotel workers and people that get tips, you’re going to be very happy. Because when I get to office, we are going to not charge taxes on tips,” Trump declared. He further emphasized his commitment to this cause, stating, “We’re not going to do it, and we’re going to do that right away, first thing in office, because it’s been a point of contention for years and years and years. And you do a great job of service, you take care of people and I think it’s going to be something that really is deserved.”

Cruz's bill, dubbed the No Tax on Tips Act, has garnered support from the National Restaurant Association and other groups. In a statement, Cruz said, “American workers in dozens of industries depend on tipped wages to support themselves. 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.”

The bill has also found allies in Republican Senators Steve Daines of Montana, Rick Scott of Florida, and Kevin Cramer of North Dakota, who have co-sponsored the legislation. Cramer echoed Trump's sentiments, stating, “President Trump is right: tips are earned by providing good service. It is simpler and more fair to let these workers keep the reward they earned rather than send it to D.C. bureaucrats.”

Daines, on the other hand, positioned the bill as a countermeasure to the inflation created by President Joe Biden. “Providing a much-needed tax cut for working families will help offset Biden’s high prices,” he said.

The proposed legislation has been lauded by industry representatives, including Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, who said Cruz’s bill “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.”

The bill, if passed, would allow Americans to deduct 100 percent of their tipped wages when they file their taxes, a move that could significantly impact the financial well-being of service workers across the country. This potential impact is not lost on Emily Williams Knight, president and CEO of the Texas Restaurant Association, who said, “It’s wonderful to create an opportunity to give back to them by helping them keep more of their hard-earned tips that they can invest in their families and our local economy.”