Sens. Jacky Rosen and Catherine Cortez Masto backed a bill that would end federal tax on tips, becoming the first Democrats to support the bill influenced by former President Donald Trump.
Democratic Sens. Rosen, Cortez Masto back GOP’s Trump influenced no tax on tips billSens. Jacky Rosen and Catherine Cortez Masto backed a bill that would end federal tax on tips, becoming the first Democrats to support the bill influenced by former President Donald Trump.
The pair of Nevada Democrats signed on as co-sponsors to the legislation from Sen. Ted Cruz, Texas Republican, on Thursday. The measure is a byproduct of Mr. Trump’s visit to Washington last month, where among other talking points at his pep rally style meetings with Republicans, he pitched a policy push to end federal taxes on tips. In a joint statement, the lawmakers said that Nevada has the highest concentration of tipped workers in the U.S. Under current federal law, all cash and non-cash tips are currently subject to federal taxes. Mr. Cruz’s measure would specifically exempt “cash tips” — cash, credit and debit card charges, and checks — from federal income tax by allowing taxpayers to claim a 100% above-the-line deduction at filing for tipped wages. “Getting rid of the federal income tax on tips would deliver immediate financial relief for service and hospitality staff across our state who are working harder than ever while getting squeezed by rising costs,” Ms. Rosen said. Their support of the bill comes as Ms. Rosen is in the midst of a high-profile reelection campaign against Republican candidate Sam Brown, who has the backing of Mr. Trump. So far, Ms. Rosen has maintained a lead in polling of her race.
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