Nevada Representative Steven Horsford has reintroduced the Tipped Income Protection and Support (TIPS) Act, which seeks to eliminate the federally mandated subminimum wage of $2.13 per hour for tipped workers and end taxes on tips. This legislation is part of a broader effort to ensure fair wages for workers who rely on tips as a significant part of their income.
Horsford emphasizes that tips should be treated as gifts rather than guaranteed income, and he aims to adjust the tax code to reflect this perspective. The bill also includes measures to prevent individuals from exploiting the system by claiming large sums as tax-free tips to transfer wealth.
This proposal aligns with similar legislative efforts, including the No Tax on Tips Act reintroduced by Nevada Senator Jacky Rosen and Texas Senator Ted Cruz, which also focuses on eliminating taxes on tipped income.
Horsford is collaborating with organizations such as One Fair Wage to ensure that working a single job provides a sustainable income. He points out that Nevada, which does not have a subminimum wage, serves as a model for other states. The legislation aims to support the approximately 6 million tipped workers in the U.S., a majority of whom are women and people of color.
Horsford has engaged with Republican colleagues who have shown support for parts of the bill, and he intends to gather bipartisan support to pass the legislation. He stresses the importance of both parties working together to help workers retain more of their earnings.