LAS VEGAS, NV – U.S. Senators Jacky Rosen (D-NV) and Catherine Cortez Masto (D-NV) announced they have joined the No Tax on Tips Act to fully exempt tipped wages from federal income tax. Nevada has the highest concentration of tipped workers in the nation, and all cash and non-cash tips are currently subject to federal taxes. This bipartisan legislation will allow workers to keep their tips without paying federal income tax on them.
“Nevada has a higher percentage of tipped workers than any other state, and 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,” said Senator Rosen. “I’ll also keep fighting to raise the minimum wage, lower costs, and cut taxes for all hardworking Nevadans while ensuring big corporations and the ultra-wealthy pay their fair share.”
“This legislation is just one part of comprehensive efforts I support to cut taxes for tipped workers and for all hardworking middle-class Nevadans. I’ll never stop fighting for Nevada families,” said Senator Cortez Masto.
“For decades, the Culinary Union has fought for tipped worker’s rights and against unfair taxation and we are proud to fight alongside Senator Catherine Cortez Masto, Senator Jacky Rosen, and Congressman Steven Horsford for tipped worker tax relief,” said Ted Pappageorge, Secretary-Treasurer for the Culinary Union. “Workers, unlike big corporations and the super-rich, are willing to pay their fair share and the Culinary Union will always fight to protect workers and against unfair taxes. Culinary Union applauds Senator Rosen, a former Culinary Union member and tipped worker, and Senator Cortez Masto for joining bipartisan legislation to provide relief to hospitality workers in Nevada. Real solutions are what workers rely on and we are proud to have senators who are fighting to deliver real results for working families.”
Senators Rosen and Cortez Masto have consistently supported efforts to cut taxes and lower costs for hardworking Nevadans. Earlier this year, Senator Rosen sent a letter urging Senate Majority Leader Chuck Schumer to put a bipartisan tax cut package on the Senate floor for a vote. She also introduced a resolution, co-sponsored by Senator Cortez Masto, opposing the creation of a federal sales tax and calling for a tax cut for working families to grow the middle class. Senators Rosen and Cortez Masto also helped introduce the Working Families Tax Relief Act to lower taxes for Nevada families by expanding the Child Tax Credit and Earned Income Tax Credit. Additionally, Senators Rosen and Cortez Masto strongly support raising the federal minimum wage and eliminating the minimum wage gap for tipped workers nationally. Nevada is one of seven states that already requires employers to pay tipped workers the full minimum wage rather than a subminimum wage.
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