Nevada’s two Democratic senators have backed a Republican-pushed senate bill to end the federal tax on tips for service workers.
Senators Catherine Cortez Masto (D-Nevada) and Jacky Rosen (D-Nevada), pictured, this week issued a press release outlining their support for the measure.
The Silver State has a significant service worker population, mostly in Las Vegas. Many of them rely on tips for a good portion of their expected income. Sin City also hosts thousands of informal workers who rely solely on tips for their livelihood.
The idea of ending the tax on tips was most recently brought into the spotlight by returning presidential hopeful Donald Trump, who made it in an almost offhand remark earlier this month at a campaign rally in Las Vegas.
The popular proposal caught on with Republican lawmakers, leading Ted Cruz (R-Texas) to formally propose it in a bill in Washington.
“This legislation is just one part of comprehensive efforts I support to cut taxes for tipped workers and for all hard-working, middle-class Nevadans. I’ll never stop fighting for Nevada families,” said Senator Cortez Masto in the press release.
Bipartisan Support
The “No Tax on Tips Act” was introduced in the Senate last week by Senators Cruz and Steve Daines (R-Montana).
Under the proposed changes, workers would still have to file tips with their employers or the IRS if self employed, but will then be entitled to a deduction for that amount.
Nevada’s senators are the first Democrat senators to publicly back the bill. The New York Post reported that some others are interested in pushing it forward.
For Cortez Masto and Rosen, that might be down to their state’s high percentage of tipped workers, as well as the influential support of the powerful Las Vegas chapter of the Culinary Union.
“For decades, the Culinary Union has fought for tipped worker’s rights and against unfair taxation, and we are proud to fight alongside Senator Catherine Cortez Masto, Senator Jacky Rosen, and Congressman Steven Horsford for tipped worker tax relief,” said Secretary-Treasurer for the Culinary Union Ted Pappageorge in the same press release as the two Nevada senators.
That marks an interesting change of tone from when he commented several weeks ago on Trump’s campaign trail proposal of the same idea.
“Relief is definitely needed for tip earners, but Nevada workers are smart enough to know the difference between real solutions and wild campaign promises from a convicted felon,” Pappageorge said at the time.
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