Uber, DoorDash Drivers Excluded From Senate-Passed Tip Tax Break

May 21, 2025, 6:19 PM UTC

Independent contractors were left out of a proposed tax break on tip earnings that passed the Senate, drawing ire from tech company representatives who fought to ensure their workers would be eligible for the savings.

The Senate on Tuesday approved the No Tax on Tips Act (S. 129) from Sens. Ted Cruz (R-Texas) and Jacky Rosen (D-Nev.) by unanimous consent. The legislation would create a new federal income tax break of up to $25,000 for tip earnings, enacting one of President Donald Trump’s signature campaign promises.

The version of the bill greenlit by the Senate excluded language that ...

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