II 

118TH CONGRESS 

2D SESSION S. 4621 

To amend the Internal Revenue Code of 1986 to eliminate the application 

of the income tax on cash tips through a deduction allowed to all 

individual taxpayers. 

IN THE SENATE OF THE UNITED STATES 

JUNE 20, 2024 

Mr. CRUZ (for himself, Mr. DAINES, Mr. CRAMER, and Mr. SCOTT of Florida) 

introduced the following bill; which was read twice and referred to the 

Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to eliminate 

the application of the income tax on cash tips through 

a deduction allowed to all individual taxpayers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘No Tax on Tips Act’’. 

5 SEC. 2. DEDUCTION FOR CASH TIPS. 

6 (a) IN GENERAL.— 

7 (1) DEDUCTION ALLOWED.—Part VII of sub8 chapter B of chapter 1 of the Internal Revenue Code 

9 of 1986 is amended by redesignating section 224 as 


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1 section 225 and by inserting after section 223 the 

2 following new section: 

3 ‘‘SEC. 224. CASH TIPS. 

4 ‘‘There shall be allowed as a deduction an amount 

5 equal to the cash tips received during the taxable year that 

6 are included on statements furnished to the employer pur7 suant to section 6053(a).’’. 

8 (2) CONFORMING AMENDMENT.—The table of 

9 sections for part VII of subchapter B of chapter 1 

10 of such Code is amended by redesignating the item 

11 relating to section 224 as relating to section 225 

12 and by inserting after the item relating to section 

13 223 the following new item: 

‘‘Sec. 224. Cash tips.’’. 

14 (b) DEDUCTION ALLOWED TO NON-ITEMIZERS.— 

15 Section 63(b) of the Internal Revenue Code of 1986 is 

16 amended by striking ‘‘and’’ at the end of paragraph (3), 

17 by striking the period at the end of paragraph (4) and 

18 inserting ‘‘and’’, and by adding at the end the following 

19 new paragraph: 

20 ‘‘(5) the deduction provided in section 224.’’. 

21 (c) NON-APPLICATION OF CERTAIN LIMITATIONS

22 FOR ITEMIZERS.— 

23 (1) DEDUCTION NOT TREATED AS A MISCELLA24 NEOUS ITEMIZED DEDUCTION.—Section 67(b) of the 

25 Internal Revenue Code of 1986 is amended by strikVerDate Sep 11 2014 01:48 Aug 10, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4621.IS S4621

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1 ing ‘‘and’’ at the end of paragraph (11), by striking 

2 the period at the end of paragraph (12) and insert3 ing ‘‘, and’’, and by adding at the end the following 

4 new paragraph: 

5 ‘‘(13) the deduction under section 224 (relating 

6 to cash tips).’’. 

7 (2) DEDUCTION NOT TAKEN INTO ACCOUNT

8 UNDER OVERALL LIMITATION.—Section 68(c) of the 

9 Internal Revenue Code of 1986 is amended by strik10 ing ‘‘and’’ at the end of paragraph (2), by striking 

11 the period at the end of paragraph (3) and inserting 

12 ‘‘, and’’, and by adding at the end the following new 

13 paragraph: 

14 ‘‘(4) the deduction under section 224 (relating 

15 to cash tips).’’. 

16 (d) WITHHOLDING.—The Secretary of the Treasury 

17 (or the Secretary’s delegate) shall modify the tables and 

18 procedures prescribed under section 3402(a) of the Inter19 nal Revenue Code of 1986 to take into account the deduc20 tion allowed under section 224 of such Code (as added 

21 by this Act). 

22 (e) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2024. 

Æ 


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