Manatee Review

Congressman Vern Buchanan and Congressman Byron Donalds have introduced the No Tax on Tips Act, aiming to exempt tips from federal income tax. The Senate version of the bill was presented by Senator Ted Cruz, with co-sponsorship from Senator Steve Daines. This bipartisan legislation proposes a deduction for qualified tipped wages.

Buchanan emphasized the importance of this bill for Florida's economy, stating, "Florida’s tourism-driven economy thrives because of the hardworking men and women in our restaurant and hospitality industries, many of whom rely on tipped wages to support their families." He further noted his commitment to reducing taxes for working Americans.

The proposed act allows a maximum deduction of $25,000 per taxable year and excludes highly compensated employees. It also specifies that deductions apply only to traditionally tipped occupations like waiters and beauticians.

President-elect Trump initially suggested this policy during his campaign last June. Kamala Harris also promised similar measures later that year. Florida ranks as the third highest tipping state in the U.S., with its tourism industry supporting over 2 million jobs.

The No Tax on Tips Act has additional support from Representatives Steven Horsford and Derrick Van Orden in the House, along with Senators Jacky Rosen, Catherine Cortez Masto, and Pete Ricketts in the Senate.

Congressman Donalds expressed concern about economic policies under President Biden: "Americans deserve to take home more of what they have earned," he said. He anticipates swift passage of the bill in Congress.

Senator Cruz highlighted the reliance on tipped wages across various industries: "This pro-worker bill will deliver relief to families facing rising costs caused by the Biden administration’s inflationary policies."

Senator Daines echoed these sentiments: "Hard-working Montanans have been hit hard with Biden’s inflation... 'No Tax on Tips' will bolster the workforce."

Buchanan's previous role as Chairman of the Ways and Means Tax Policy Subcommittee involved overseeing tax reforms aimed at lowering rates for individuals and small businesses.