President Trump recently began his second term by reaffirming his campaign promise to eliminate taxes on tips for nearly 6 million workers across the US. Currently, federal law allows tipped workers to be paid as little as $2.13 an hour, a minimum that has not been adjusted since 1991. Only seven states have banned this sub-minimum wage, including Nevada.
Democrats, including Senators Catherine Cortez Masto and Jacky Rosen, have introduced bipartisan legislation to abolish taxes on tipped income. Sherie Cummings, a cocktail server at Mandalay Bay Casino and member of the Culinary Union, expressed her support for the legislation, highlighting the financial struggles faced by tipped workers.
Congressman Steven Horsford has also introduced the Tipped Income Protection and Support Act, which not only eliminates taxes on tips but also abolishes the sub-minimum wage for tipped workers. This legislation has garnered support from other Nevada Democratic congressional representatives.
Despite opposition from the restaurant industry, the push to eliminate taxes on tips has been criticized for not addressing the sub-minimum wage for tipped workers and failing to create guardrails to prevent employers from exploiting a no-tax on tips policy.
The Culinary Union has emphasized the importance of eliminating taxes on tips and increasing the sub-minimum wage to help workers handle the high cost of living. The union’s secretary-treasurer, Ted Pappageorge, underscored the need to uplift millions of workers by ending the sub-minimum wage and federal income taxes on tips.
Source
Note: The image is for illustrative purposes only and is not the original image of the presented article.
