Nevada’s Rep. Horsford Pushes TIPS Act for Fair Wages

A Democrat from Nevada and a recognizable lawmaker reintroduced legislation seeking to eliminate a subminimum wage and exempt tips from taxes. The proposal, reintroduced by Reps. Steven Horsford (NV-04) and Donald Norcross (NJ-01), is in fact enjoying bipartisan support.

TIPS Act to Eliminate “Inhumane” Subminimum Wage

The two lawmakers announced the reintroduction of the Tipped Income Protection and Support (TIPS) Act on Thursday. Besides support from Congressman Horsford, the TIPS Act is also backed by Congresswoman Dina Titus, Rep. Delia Ramirez, Congressman Emanuel Cleaver, and other lawmakers.

Horsford spoke about the nature of tips, recognizing such gratuity as a gift rather than a “guarantee.” In that line of thought, he said that relevant rules in the country’s tax code need to address the nature of tips. “Adding insult to injury, many tipped service workers across the country earn a paltry $2.13 per hour with employers counting on tips to make up the difference and ensure a dignified wage,” Horsford added.

He recognized the aforementioned subminimum wage of $2.13 per hour as inhumane. Finally, Horsford said thanks to the TIPS Act, workers across the US will benefit from dignified wages, adding that Nevada is helping lead by example with the proposal to eliminate this subminimum wage.

“A tip is a gift, not a guarantee, and it’s beyond time that we recognize that in our tax code.“

Congressman Steven Horsford

A Pivotal Step in the Right Direction

Under the reintroduced legislation, the taxation on tips would be eliminated. This means that tipped workers would no longer have to pay taxes on this extra income. As noted, the TIPS Act also seeks to eliminate the subminimum hourly rate of $2.13.

Not unexpectedly, the legislation also seeks to combat abuse with tips. Under the TIPS Act, billionaires and millionaires won’t be permitted to gift significant sums to friends and family without paying taxes by claiming that’s a tip.

Norcross, the other Congressman who announced the reintroduction of the TIPS Act, also spoke about the struggle many workers across the country are facing to provide for their families. “By eliminating the subminimum wage and taxes on tips, we can put more money into the pockets of tipped workers,” the Congressman added.

Last but not least, Norcross said: “While there’s still more work to be done when it comes to increasing the federal minimum wage, this legislation marks a pivotal step in the right direction toward ensuring tipped workers get a fair day’s pay for a hard day’s work.”

While the proposal was recently reintroduced, it is yet to be seen whether it will pick up speed. Still, it is highly likely that the TIPS Act would gain traction considering it is favored by both Republicans and Democrats.