WASHINGTON, DC - Yesterday, Sen. Ted Cruz introduced the No Tax on Tips Act of 2025. The bill will eliminate income tax on the tips earned by servers and bartenders in the restaurant and foodservice industry. Sean Kennedy, Executive Vice President of Public Affairs for the National Restaurant Association, had this to say about the bill:

“Eliminating taxes on tips would put cash back in the pocket of a significant number of workers in the restaurant and foodservice industry and could help restaurant operators recruit industry workforce. The No Tax on Tips Act of 2025 is sensible legislation that includes refinements and protections to make it fiscally responsible while still supporting our employees.

“Tax policy plays a major role in the success of the restaurant industry, so we’ll continue to work with Congress on this and other common-sense tax policy that will stimulate investments and improvements in restaurants of all sizes and help operators make greater investments in their workforce and communities.”

As the organization explained, more than 2 million tipped servers and bartenders work in the restaurant and foodservice industry.