President Trump continues push for ‘no tax on tips'
WASHINGTON (NEXSTAR) — While President Donald Trump continues to call for an end to federal taxes on tips, lawmakers from both sides of the aisle are trying to put that into action.
Especially Congress members from Nevada, which has the nation's highest concentration of tipped workers.
'I support no tax on tips, but I think it has to be done in a fair way,' Rep. Dina Titus (D-Nev.) said.
Congresswoman Dina Titus says it should come with a minimum wage raise. She's cosponsoring the 'TIPS Act' to do that.
'You've got to be sure that employers don't shift the burden just to tips for income,' Titus said.
But some tax policy analysts say that shift could be an unintended consequence.
'Could be that…you do see suddenly a big adoption of tips in a bunch of new industries,' Tax Foundation Senior Tax Policy Analyst Alex Muresianu said.
Muresianu says tipped workers make up less than 5% of the labor force, and an even smaller portion earn enough to owe taxes.
'A substantial chunk of tipped workers would not see a benefit from the policy,' Muresianu said.
Sen. Catherine Cortez Masto (D-Nev.) says tax relief for those in the service industry is worth pursuing.
'That's my family. Working in that industry, my father worked in that industry. If there's a way that we can help them keep more money in their pockets, I'm always going to fight to figure out how to make that happen,' Cortez Masto said.
Cortez Masto is cosponsoring a bipartisan bill but she says other policies, like the Child Tax Credit, need to be part of the picture.
'It should be a comprehensive approach and that's what I'm looking for,' Cortez Masto said.
The policy is estimated to cost about $110 billion over a decade.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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