Rosen Helps Introduce Bipartisan Bill to Exempt Tips from Federal Income Tax

The Bipartisan Bill Includes Guardrails To Ensure It Benefits Hardworking Nevadans, Not CEOs And Wealthy Individuals

WASHINGTON, DC – Today, U.S. Senator Jacky Rosen (D-NV), helped introduce bipartisan legislation with Senator Ted Cruz (R-TX) and other colleagues to exempt tipped wages from federal income tax. Nevada has the highest concentration of tipped workers in the nation, and the bipartisan No Tax on Tips Act would allow workers to keep their tips without paying federal income tax on them. This legislation also includes guardrails to ensure that it benefits Nevadans who need it most, and not CEOs and wealthy individuals. 

“Nevada’s service and hospitality workers are the backbone of our economy, and they deserve financial relief at a time when they are getting squeezed by rising costs,” said Senator Rosen. “This bipartisan bill will ensure tipped workers in Nevada can keep more of their hard-earned money. I’ll also keep fighting to raise the minimum wage and eliminate the subminimum wage for service employees, lower costs, and cut taxes for all hardworking Nevadans.”

“The Culinary Union applauds Senator Jacky Rosen for re-introducing the No Tax on Tips bill in the U.S. Senate and urges its swift passage. Eliminating taxes on tips and ending the $2.13 sub-minimum wage that is the reality in too many states across the country will uplift millions of hospitality workers. This bill is a critical step to ensure one job is enough for workers to support their families. Senator Rosen understands the challenges working families face and is fighting for fair pay and taxation,” said Ted Pappageorge, Secretary-Treasurer for the Culinary Union. “Republicans have made promises to lower the cost of living for Americans, delivering on those commitments must start with meaningful action. In addition to eliminating taxes on tips, they must work with Democrats to raise the sub-minimum wage and address corporate greed driving up prices on essential goods like food, gas, and housing. It’s time for Congress to act now to deliver on real solutions for working families.”

Senator Rosen has consistently supported efforts to cut taxes and lower costs for hardworking Nevadans while making sure billionaires and big corporations pay their fair share. Last year, she sent a letter urging Senate leaders to put a bipartisan tax cut package on the Senate floor for a vote. She also introduced bipartisan legislation to cut taxes for veterans starting small businesses, and a resolution opposing the creation of a federal sales tax and calling for a tax cut for working families. Senator Rosen 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. She also strongly supports raising the federal minimum wage and eliminating the minimum wage gap for tipped workers nationally. Nevada is one of seven states that already require employers to pay tipped workers the full minimum wage rather than a subminimum wage.

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