This was one of the most popular election promises of President-elect Donald Trump eliminate taxes on tips for working Americans.

Now Congress is helping him make good on that promise, FOX Business has learned.

Texas Republican Sen. Ted Cruz on Thursday reintroduced the No Tax on Tips Act, a bipartisan bill he first introduced last year that would have exempted tips from service workers from federal income tax. The text of the updated bill was obtained exclusively by FOX Business.

If the bill is passed and signed into law, the change will be made Internal Revenue Service code that allows Americans working in the food, beverage and beauty service industries to claim a 100% deduction for cash and non-cash tips on wages up to $25,000. Employees earning more than $150,000 are not exempt from the tip tax.

It would also fulfill part of Trump's broader campaign promise to expand tax cuts for middle-class Americans and small businesses in the wake of Biden-era inflation.

“American workers in many industries rely on high wages to make ends meet,” Cruz told FOX Business in an exclusive statement. End the illegal practice of taxing voluntary tips.”

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Republican presidential candidate former President Donald Trump speaks to guests during a campaign stop at Drake Enterprises, an auto parts manufacturer, on September 27, 2023 in Clinton Township, Michigan. (Scott Olson/Getty Images/Getty Images)

The legislation is not without its critics. The US is under budget deficit President Biden's spending now it's about $2 trillion—historic levels except when the US government shut down businesses during COVID and handed out free money to make up the difference. Critics say the tax cuts could add to the recent sell-off in the deficit and bond market, which has resulted in higher interest rates amid deficit fears.

Some raised concerns about the practicality of the above taxes gardening workers often earn below the federal income tax threshold and may not even benefit from such a tax deduction.

Cruz introduced the original legislation last June at one of Trump's campaign rallies after pitching the idea of ​​tax breaks to attract service workers, who represent about 40% of the US workforce. Considering that the Republicans were in the minority last CongressCruz's bill, co-initiated only by Republicans, did not participate in the vote.

This time, the bill was signed by Democratic Sens. Jacky Rosen, D-Nev., Catherine Cortez Masto, D-Nev., as well as Republicans Steve Daines, R-Mont. and has bipartisan support with Pete Ricketts, R-. Neb. A supplemental bill has also been introduced in the lower house by Republican Vern Buchanan of Florida.

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Unidentified waiter calculates tips or customer payment while working in restaurant. On Monday, the IRS issued a notice regarding the proposed form reporting program. (iStock / iStock)

Cruz told FOX Business that he is confident the updated legislation will become law quickly, given Republican control of the House and Senate and the desire to address the economic needs of working Americans affected by inflation.

“I've long believed that the GOP should be the party of bartenders, waiters and waitresses, and this bill is an important step in ensuring that we address the economic needs of working Americans,” he said. “This pro-worker bill will provide relief to families facing rising costs caused by the inflationary policies of the Biden administration.”

The bill has already received endorsements from industry groups including the National Restaurant Association, the Professional Beauty Association and the International Franchise Association, which say the move could benefit restaurant workers and small businesses, as well as help recruit workers.