In a surprising bipartisan move, both Democratic senators from Nevada have signed on to a Republican-led bill aimed at removing federal taxes on tips according to The New York Post.
The 'No Tax on Tips Act,' spearheaded by Senator Ted Cruz and endorsed by Donald Trump, could bring significant financial relief to tipped workers in Nevada.
The legislative proposal, formally introduced by Texas Senator Ted Cruz, has been named the "No Tax on Tips Act."
It is designed to allow workers to claim a tax deduction equal to the amount of cash tips they receive during a tax year. This bill represents a significant shift in tax policy, aimed specifically at supporting workers who frequently receive tips as a major part of their income.
Senators Catherine Cortez Masto and Jacky Rosen, both Democrats from Nevada, have emerged as the only Democrats so far to publicly support the bill. Their endorsement is notable, given the bill's Republican origin and the political dynamics involved.
During a recent rally in Sunset Park, Las Vegas, former President Donald Trump also voiced his support for the bill, pledging to eliminate taxes on tips as part of his campaign platform if he were re-elected. This has added a high-profile element to the bill's publicity and potential appeal.
Senator Jacky Rosen, leveraging her background as a former waitress and a member of the Culinary Workers Union Local 226, has been vocal about the pressures faced by tipped workers. With Nevada having a high concentration of such workers, the impact of this bill could be particularly significant in the state.
As it stands, the 'No Tax on Tips Act' has been referred to the Senate Finance Committee. Although no hearings have been scheduled yet, the movement of the bill is being closely watched by various stakeholders.
The Culinary Workers Union Local 226, historically critical of Trump’s claims about tax relief for workers, has expressed a positive view of the bipartisan nature of the bill, although they have stopped short of directly praising Senator Cruz.
Other notable Republican senators, such as Kevin Cramer, Steve Daines, Rick Scott, Pete Ricketts, and Cindy Hyde-Smith, have also thrown their support behind the bill. This wide Republican backing, coupled with strategic Democratic support, underscores the bill's potential to cross political divides.
Senator Cortez Masto has emphasized that the bill is part of a broader effort to alleviate tax burdens on middle-class citizens in Nevada. By supporting this bill, she aims to provide immediate financial relief to a significant segment of her constituents.
On social media, Senator Rosen articulated the economic challenges faced by tipped workers, noting, "Nevada has the highest percentage of tipped workers, and they’re working harder than ever while being squeezed by rising costs."
"Getting rid of the federal income tax on tips would deliver immediate financial relief for them," she added, highlighting the direct benefits of the legislation.
However, not all tip earners see the bill as the best solution to their challenges. Alice Little, a licensed sex worker in Nevada, has expressed reservations about the effectiveness of the bill in its current form. She argues for more protections against employers forcibly splitting tips.
Little also raised concerns about the broader rights of legal sex workers, suggesting that senators should focus more on legislation that protects their professional rights and financial autonomy.
Despite these concerns, the overwhelming response to the bill has been positive. Ted Pappageorge, union Secretary-Treasurer, stated, “This bipartisan legislation will allow hospitality workers to keep their tips without paying federal income tax on them,” emphasizing the practical benefits of the bill.
The 'No Tax on Tips Act marks a significant bipartisan effort to address the financial burdens on tipped workers in Nevada and potentially across the United States.
With the backing of key figures from both major political parties, the bill promises to make a meaningful difference in the lives of many who rely on tips as a substantial part of their income.
