Today, Senator Ted Cruz introduced the No Tax on Tips Act of 2025, aiming to eliminate income tax on tips earned by servers and bartenders in the restaurant and foodservice industry. The National Restaurant Association expressed support for this initiative through Sean Kennedy, executive vice president of Public Affairs.
Kennedy stated that 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 assist restaurant operators in recruiting staff. He described the legislation as "sensible," noting its refinements and protections to ensure fiscal responsibility while supporting employees.
Kennedy also highlighted the importance of tax policy for the success of the restaurant industry, expressing a commitment to working with Congress on common-sense policies that stimulate investments and improvements across restaurants, benefiting both workforce and communities.
The restaurant and foodservice sector employs more than two million tipped servers and bartenders.