Horsford Introduces TIPS Act

U.S. Representative Steven Horsford has introduced legislation to reshape the compensation system for tipped workers, echoing former President Donald Trump’s idea of eliminating the taxation of tips.

Horsford’s Tipped Income Protection and Standards (TIPS) Act, unveiled last week in Washington, D.C., seeks to eliminate the federal sub-minimum wage for tipped workers and end federal income tax on tips altogether. The bill has garnered support from Nevada’s Culinary Union, which praised the legislation for addressing unfair treatment of tipped employees.

A union spokesperson noted the impact the TIPS Act would have on millions of workers, particularly those in Nevada.

“By eliminating federal income taxes on tips and ending the sub-minimum wage, this legislation that Congressman Horsford is championing will uplift millions of workers.”

Nevada has become a focal point for the national conversation surrounding tipped workers’ wages.

Horsford pointed to the state’s wage structure as a model for others, noting that Nevada’s elimination of the sub-minimum wage would increase productivity and employee retention in the restaurant industry.

“In Nevada, restaurants have seen increased productivity, employee retention, and customer satisfaction since eliminating the sub-minimum wage,” Horsford said.

Horsford’s approach contrasts with the national trend, particularly in states like Texas, Virginia, and Alabama, where tipped workers still earn as little as $2.13 an hour.

Former President Donald Trump brought the issue of taxes on tips to the national stage during his presidency, and the debate has gained traction ever since. Trump, along with Vice President Kamala Harris, has supported the idea of eliminating federal income taxes on tips, a proposal that resonates with both parties.

For Horsford, the TIPS Act is more than just wages and taxes—it is a matter of fairness and economic social justice.

“No one working full-time in America should live in poverty, yet millions of tipped workers do just that—many of whom are women and people of color,” he said.

The minimum wage for tipped workers in Nevada is $12, the fifth-highest, after Washington, California, Oregon, and Hawaii.