Provide temporary tax relief for tipped workers

To: Sen. Butler, Sen. Padilla, Rep. Pelosi

From: A constituent in San Francisco, CA

June 25

The Tip Tax Termination Act aims to provide financial relief to workers in tipped industries like cosmetology, hospitality, and food service by excluding up to $20,000 in tips from being subject to federal income and employment taxes for 5 years until the end of 2028. This policy recognizes the economic challenges faced by tipped employees and seeks to increase their take-home pay. While the proposal offers temporary tax savings, it does not address the underlying issue of inadequate base wages in tipped professions that necessitate reliance on gratuities. A comprehensive approach reforming minimum wage laws and employment practices in these industries may be needed for long-term, sustainable solutions. Nevertheless, this bill presents an opportunity to assist workers struggling with rising costs by allowing them to keep more of their hard-earned tips.

Write to Laphonza Romanique Butler or any of your elected officials

Resistbot is a chatbot that delivers your texts to your elected officials by email, fax, or postal mail. Tap above to give it a try or learn more here!