Trump Proposed the Idea. Now a House Democrat Has Introduced Legislation in Support of the Policy.

Leah Barkoukis | September 19, 2024 10:30 AM

Democratic Rep. Steven Horsford of Nevada introduced a Trump proposal on Tuesday, looking to eliminate federal taxes on tips.

“Today, I am proud to be introducing a bill because a disproportionate number of the 6 million tipped workers who are women and people of color make as little as $2.13 cents an hour, which really is poverty wages, at a time when families and workers are trying to afford the cost of living,” Horsford said as he announced the legislation.

The Tipped Income Protection and Support (TIPS) Act would also eliminate subminimum wages for tipped workers, to “prevent employers or high-end earners from exploiting the elimination of federal taxation of tip,” Horsford said. […]
Horsford’s bill would exempt up to $112,500 of tips from income taxes for service workers across the country. (The Hill)

"Latinas and Black women in particular face significant pay disparities earning less than their white male counterparts. If we’re serious about income equality and closing the gender pay gap, then this is the bill that people need to get behind,” Horsford continued.

“Sadly, for too many tips are not a bonus; they are the difference between making rent or facing eviction, between feeding their children and or going hungry themselves,” he added. “The TIPS act will change this.”