A good idea is a good idea — maybe that’s why Kamala Harris is stealing some of former President Trump’s ideas on various issues, like his “no tax on tips” proposal. The vice president is making like it was her idea, and in an even more satisfying development, a Democrat Congressman — Rep. Steven Horsford (D-NV — on Tuesday introduced a bill to make tips given to service workers tax-free.
Rep. Steven Horsford (D-Nev.) officially introduced legislation on Tuesday seeking to eliminate federal taxes on tips, a proposal that both major presidential candidates have backed.
The Tipped Income Protection and Support (TIPS) Act would also eliminate subminimum wages for tipped workers, to “prevent employers or high-end earners from exploiting the elimination of federal taxation of tip,” Horsford said.
Democrat or not, it’s a good idea. Tax reductions are always good, and this one will incentivize workers in the service industries that are traditionally for tips — restaurant wait staff and so forth. Former President Trump has also proposed a “no tax on overtime” plan as well, which would be an even better idea; want to see productivity in hourly wage makers explode? Incentivize them to work longer hours without worrying about jumping tax brackets.
Incentives matter.
See Related: Trump’s ‘No Tax on Tips’ Movement Is Growing
Tax Foundation on Trump’s ‘No Tax on Tips’ Proposal – Good Idea or Boondoggle?
But let’s go back to “no tax on tips.” Here’s the fun part. Rep. Horsford, a Democrat, not only supports this no tax on tips idea that originated with the Democrat’s worst nightmare, Donald Trump, but has actually authored a bill and introduced it. He’s very proud of it, too; he gave a speech on the Capitol steps on Tuesday, and he rang at least one predictable bell.
“Today, I am proud to be introducing a bill because a disproportionate number of the 6 million tipped workers who are women and people of color make as little as $2.13 cents an hour, which really is poverty wages, at a time when families and workers are trying to afford the cost of living,” Horsford said at the event.
Horsford’s bill would exempt up to $112,500 of tips from income taxes for service workers across the country.
“Latinas and Black women in particular face significant pay disparities earning less than their white male counterparts. If we’re serious about income equality and closing the gender pay gap, then this is the bill that people need to get behind,” Horsford said.
So it’s a good idea introduced for screwy reasons. It’s still a good idea.
Now, let’s presume (and hope) that in January of 2025, we see Donald Trump inaugurated as president and a GOP-controlled Congress seated. Now, there is a chance to implement the Trump agenda, and in that, we can rely on one thing: The Democrats will bitterly oppose anything a Republican Congress may try.
Including “no tax on tips.”
Political parties are frequently schizophrenic beasts, and none more so than today’s Democrats; even so, refusal to support a bill that one of them authored and introduced in the previous Congress will likely be a bridge too far. This is a bill that may very well pass, and you can bet the farm that a newly inaugurated President Trump will make a production of signing. The Dems may oppose it because Orange Man Bad, but it’s a safe bet that a few will jump ship — and even if they don’t, it’s a political victory for the GOP and a financial victory for wait staff and other tipped workers all across the fruited plain.
Win-win.
