A bill to exempt all tips from federal income tax was introduced in the U.S. House on Tuesday, sparking a rush of support from Nevada Democrats. However, U.S. Rep. Dina Titus (D-Nev.) expressed reservations about the legislation, stating that it would not benefit lower-paid tip earners. Titus argued that exempting tips from taxation should be accompanied by an increase in the minimum wage to ensure that all tip earners benefit, not just higher-paid ones who are already below the threshold for paying taxes on their income. She also raised concerns about potential workplace backlash and inequities if the exemption was implemented without a minimum wage increase.
Despite these concerns, the House bill, which mirrors a Senate version, has gained bipartisan support. Former President Donald Trump’s campaign initially proposed the idea, which was dismissed by the Culinary Union as a political stunt but has since gained momentum. Nevada Democrats Reps. Steven Horsford and Susie Lee have both thrown their support behind the bill, with Horsford listed as a co-sponsor and Lee cosponsoring the legislation.
Lee highlighted that Nevada has the highest concentration of tipped workers in the nation and emphasized the importance of keeping more money in the pockets of Nevadans, particularly in light of federal taxes on tips. She noted that the bipartisan legislation would provide immediate relief to many Nevadans and should be part of a broader effort to raise wages and protect workers from corporate greed.
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