Op-Ed: What the 'No Tax on Tips Act' Means for San Antonio & Next Mayor

By Chris Herring, Former 2025 San Antonio Mayoral Candidate and Publisher, River Walk Magazine

Last week, the U.S. Senate quietly but decisively passed the "No Tax on Tips Act"—a bipartisan bill that could have significant implications for San Antonio's working-class economy. Introduced by Texas Sen. Ted Cruz and supported by Democrats like Nevada’s Sen. Jacky Rosen, the bill allows tipped workers to deduct up to $25,000 in cash tips from taxable income if reported properly. For a city like San Antonio, where the economy leans heavily on hospitality, tourism, and service industry labor, this legislation isn’t just policy—it’s personal.

Thousands of San Antonians work in restaurants, hotels, and entertainment venues. They are baristas, servers, valets, and hotel attendants who rely on tips to survive. On paper, this legislation offers long-overdue relief. In practice, the impact may be more nuanced.

First, we should acknowledge the positive: many hardworking San Antonians may see more money in their pockets—money that will likely be spent locally on housing, groceries, and childcare. But there’s a critical caveat: this benefit primarily applies to workers who are paid in cash tips and report them through proper payroll systems. The reality is, many tipped workers earn primarily via credit card transactions, which are already taxed and traceable.

Moreover, while the bill is touted as pro-worker, its overall reach may be limited. According to the Urban-Brookings Tax Policy Center, the majority of low-wage earners already owe little or no federal income tax, so the fiscal lift may be less than advertised. In short: it’s a helpful measure, but not transformational.

The real opportunity lies in how San Antonio’s city leaders respond. This is where the mayoral candidates—Gina Ortiz Jones and Rolando Pablos—must weigh in. Both must explain how they plan to uplift San Antonio's working families beyond symbolic legislation.

Will they push for a local living wage? Will they ensure city-funded programs like Ready to Work actually connect graduates to long-term employment, particularly in distressed ZIP codes? Will they confront the persistent infrastructure and equity gaps that leave the South and East Sides behind while Northside continues to benefit from new business expansion?

And perhaps most importantly: will they address the foundational question this tax bill raises?

How do we build an economy where tipped work isn’t a survival mechanism, but a stepping stone to prosperity?

As someone who ran for mayor and walked the streets of 78207, 78210, and 78211, I saw firsthand how little faith people have in government promises. They are not looking for handouts—they’re asking for pathways. The "No Tax on Tips Act" is a start, but San Antonio deserves a broader strategy.

We should be asking:

• How do we ensure tipped workers benefit fairly from this tax relief?
• Will employers adjust wage structures in response?
• Can this legislation be leveraged to strengthen economic mobility in our city’s most underserved areas?

The upcoming election presents a chance to demand more than rhetoric. It’s time for serious answers and bold strategies. San Antonio’s future depends on how we support the very workers who keep our city running—one plate, one hotel room, one tip at a time.