Senate passes No Tax on Tips Act

WASHINGTON (NBC, KYMA/KECY) - The U.S. Senate passed the No Tax on Tips Act Tuesday.

The bill, which quickly passed unanimously on the floor, establishes a new tax deduction of up to $25,000 for tips.

The move came as a surprise, as Senator Jacky Rosen (D-Nev.) went to the floor and moved to pass the bill by unanimous consent.

"Nevadans, our families, we're being squeezed, and they need real relief. They need us to work together to lower costs for them. That's why I introduced the no tax on tips act alongside Senator Ted Cruz from Texas, which would eliminate federal income taxes on tipped wages.

For so many service and hospitality workers, tips aren't extra. It's part of their income that they use to make ends meet. Tips are how Nevadans pay their rent, cover their groceries, take care of their families, their kids. And Nevada has more tipped workers per capita than any other state. So this bill would mean immediate financial relief for countless hard working families.

It's not a time for politics. It's a time for progress for hard working Americans. This bipartisan bill is a good idea that has supports from Democrats and Republicans, so we should pass it as soon as possible, without any poison pills. The problem is that the House Republicans have included a version of the no tax on tips act in their bigger budget bill. A bill that cuts Medicaid snap and other programs, families rely on to give more tax breaks for billionaires and the ultra wealthy."

Sen. Jacky Rosen (D-Nev.)

The bill will now be sent to the House, which will need to pass it and send it to President Donald Trump's desk for his signature.

However, parts of the No Tax on Tips Act was already included in the House GOP megabill which is currently being reviewed.

So, it's not clear if the House will also pass this latest bill in conjunction with the previous House megabill.