To amend the Internal Revenue Code of 1986 to provide that tips received for certain services shall not be subject to income or employment taxes.

Amends the Internal Revenue Code to treat the first $10,000 of tips received for cosmetology, hospitality (including lodging and food and beverage services), recreation, taxi, newspaper delivery, and shoe shine services as property transferred by gift, thus exempting such tips from income, employment, and unemployment taxation and from wage withholding.