LAS VEGAS (KLAS) — No taxes on tips is becoming a closer reality for millions of workers after Democratic Nevada Sen. Jacky Rosen and other senators reintroduced the proposal Thursday, her office said.
Rosen, joined by Republican Texas Sen. Ted Cruz, reintroduced their No Tax on Tips Act, which would exempt tips from the federal income tax. The proposal did not move forward in the last congressional session but was expected to receive more support this time with added guardrails.
“Nevada’s service and hospitality workers are the backbone of our economy, and they deserve financial relief at a time when they are getting squeezed by rising costs,” Rosen said in a statement. “This bipartisan bill will ensure tipped workers in Nevada can keep more of their hard-earned money. I’ll also keep fighting to raise the minimum wage and eliminate the subminimum wage for service employees, lower costs, and cut taxes for all hardworking Nevadans.”
President-elect Donald Trump proposed the idea during a campaign rally in Las Vegas last summer.
“Republicans have made promises to lower the cost of living for Americans, delivering on those commitments must start with meaningful action,” Ted Pappageorge, secretary-treasurer for the Culinary Union said. “In addition to eliminating taxes on tips, they must work with Democrats to raise the sub-minimum wage and address corporate greed driving up prices on essential goods like food, gas, and housing. It’s time for Congress to act now to deliver on real solutions for working families.”
It was not immediately clear when the proposal could move forward in Congress.
Nevada has more tipped workers per capita than any other state in the country, Rosen said.
In the last Congress, Democratic Sen. Catherine Cortez Masto also joined the bipartisan proposal.
