The Senate on Tuesday stumbled into quiet passage of a bill to fulfill President Trump’s campaign pledge of “no tax on tips.”
Most surprisingly, the move to pass the bill came from a Democrat.
“I am not afraid to embrace a good idea, wherever it comes from,” Sen. Jacky Rosen, Nevada Democrat, said, noting Mr. Trump first floated his no tax on tips pledge while campaigning in her state.
Mr. Trump ultimately won Nevada and the other six swing states in a dominant victory last fall.
Ms. Rosen went to the floor Tuesday evening and asked unanimous consent to pass the No Tax on Tips Act, a bipartisan bill that she had cosponsored with Sen. Ted Cruz, Texas Republican.
“Nevada has more tipped workers per capita than any other state, so this bill would mean immediate financial relief for countless hardworking families,” she said.
Most unanimous consent requests to pass legislation in the Senate are rejected by someone in the other party, unless leadership has prearranged a deal. But that did not appear to be the case with the No Tax on Tips Act.
Since no Republican came to the floor to object to Ms. Rosen’s request, the bill passed by unanimous consent, with no roll call vote needed.
The measure creates a deduction for tipped wages with guardrails and income limits to ensure the benefits go to those who need it most.
House Republicans have included their own deduction for “no tax on tips” in the budget reconciliation package carrying broader tax and spending cuts and other policies in Mr. Trump’s agenda. But it would sunset in 2028 as Mr. Trump’s term comes to a close.
Mr. Cruz said he was not surprised the measure received unanimous support as he commended Democrats for putting aside partisanship to agree to the “common sense” proposal.
“Whether it passes freestanding or as part of the bigger bill, one way or another ’no tax on tips’ is going to become law and give real relief to hard-working Americans,” he said.
Democrats urged the House to take up the standalone bill since they oppose the GOP’s reconciliation package.
“I hope the House of Representatives passes this bill that permanently ends federal taxes on tips, instead of House Republicans’ unserious version that sunsets no taxes on tips in just four years while gutting health care for the very working families they say they are standing with,” said Sen. Catherine Cortez Masto, Nevada Democrat.
