Nevada Rep. Horsford Introduces TIPS Act to Eliminate Taxes on Tips and Subminimum Wage

Sep 17, 2024, 07:38 PM

Rep. Steven Horsford, a Nevada congressman, has introduced the Tipped Income Protection and Support Act (TIPS Act), aimed at eliminating taxes on tips and the subminimum wage for tipped workers. This legislation marks the Democrats' first effort to address this issue, which has gained attention on the presidential campaign trail. The bill seeks to provide tax relief and ensure fair wages for the approximately 6 million workers in tipped industries. The initiative, originally popularized by former President Donald Trump, has received mixed reactions, with some experts arguing that it may not effectively help low-wage workers. Saru Jayaraman of One Fair Wage highlighted that tipped workers can be paid as little as $2.13/hour.