Nevada Representative Steven Horsford has introduced a new bill aimed at eliminating federal taxes on tips, a move that could significantly impact the lives of millions of workers in the service industry. The proposed legislation, known as the TIPS Act, seeks to address the financial struggles faced by tipped workers, who often rely on gratuities to make a living wage.
According to Horsford, the current minimum wage for tipped workers, which stands at $2.13 per hour, is woefully inadequate, particularly for women and people of color who make up a disproportionate number of tipped workers. “These individuals, including Latinas and Black women, often face significant pay disparities, earning less than their white male counterparts,” Horsford noted.
The TIPS Act aims to alleviate the financial burden on these workers, who often rely on tips to make ends meet. As Horsford emphasized, “For too many, tips are not a bonus, but a necessity – the difference between paying rent or facing eviction, feeding their children or going hungry themselves.”
The proposal has gained support from high-profile figures, including Vice President Kamala Harris, who has publicly backed the plan. The TIPS Act was first announced by former President Trump during a campaign stop in Las Vegas earlier this summer.
