Eliminate Taxes on Tips: An Overview of Rep. Horsford’s TIPS Act
The Tipped Income Protection and Support (TIPS) Act
Rep. Steven Horsford (D-Nev.) has formally introduced the Tipped Income Protection and Support (TIPS) Act, striving to eliminate federal taxes on tips and subminimum wages applied to tipped workers. Horsford claims that this legislation is essential in ensuring fair compensation, as many tipped employees, predominantly women and people of color, often make poverty wages.
Key Objectives of the TIPS Act
- Elimination of federal taxes on tips
- Removal of subminimum wages for tipped workers
- Exemption of up to $112,500 of tips from income taxes for service workers
During the announcement made outside the Capitol, Horsford emphasized the pressing need for this bill, particularly in light of income disparities affecting Latinas and Black women in the workforce.
Political Backing and Implications
This bill has garnered support from both major presidential candidates, with noted endorsements from Donald Trump and Vice President Kamala Harris. The proposal underscores the political maneuvering taking place as the November elections draw near.
Horsford criticized Trump, suggesting he offers no substantive policy proposals, while asserting the necessity of the TIPS Act in achieving income equality.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.