Staff Reports
A proposal to tax tips may sound like something cooked up in a backroom with all the usual suspects, but here it is—introduced by a Democrat. Rep. Steven Horsford of Nevada has slid onto the scene with his new bill seeking to make tips for service workers tax-exempt. Apparently, it takes a Democrat to realize that getting taxed on the few extra bucks earned by hardworking waitstaff is just plain wrong—a sentiment previously championed by former President Trump, who seems to be getting credit for ideas that currently belong in the Democrat playbook.
The official name of this proposal is the Tipped Income Protection and Support (TIPS) Act, a cleverly titled bill aimed at eliminating not just taxes on tips but also the subminimum wage that many tipped employees are forced to live on. Rep. Horsford seems convinced that without the possibility of being taken advantage of, employers would treat their tipped workers with the respect they deserve. It begs the question—wouldn’t workers be better served if they simply kept more of what they earn, rather than relying on heavy-handed legislation to protect them?
While this seemingly bipartisan move may put some Democrats in a bit of a bind, it’s refreshing to see a glimmer of common sense in a party too often lost in progressive ideals. Reducing taxes might be clichéd, but it’s universally palatable, and in this instance, it may also incentivize service workers to put in more hours, just like Trump’s idea of a “no tax on overtime” plan. When workers aren’t tethered to the anxiety of crossing tax brackets, they might just pick up extra shifts, benefitting everyone involved.
Let’s not overlook the irony here: a Democrat put forward a solid idea that aligns more with fiscal conservatism than the party’s usual orientation. While Horsford eloquently addresses gender pay discrepancies and inequality in his pitch, it seems the best way to help those who earn tips is to cut the governmental middleman out of the equation. Wouldn’t it be more effective for the government to simply step out of the way and let tips go directly to service workers? After all, no one needs a bureaucrat taking a bite out of a waiter’s egg rolls.
No Tax on Tips Bill Introduced in Congress – By a Democrat https://t.co/Fs2Zd2406I
— Ward Clark (@TheGreatLander) September 18, 2024
As the political pendulum swings toward another election cycle, optimism reigns for what may happen if Republicans regain control in 2025. A Republican Congress could ensure that this bill doesn’t just become another talking point for the Democrats but is pushed through for the benefit of service employees everywhere. With a GOP president willing to sign such legislation, it’s easy to envision a frenzy among Democrats—some may even switch sides to back a bill they previously championed, purely out of spite for seeing Trump’s name attached to it.
Ultimately it’s a win-win for taxpayers and service workers alike. Often labeled as ridden with contradictions, Democrats might want to put their partisan biases aside to recognize that this legislation could indeed serve a multitude of constituents—if they can get over their somewhat irrational aversion to anything that bears Trump’s fingerprint. So while the parties may hurl insults, the real victory is in helping the hard-working Americans who rely on tips to pay their bills.
