Sens. Jacky Rosen and Catherine Cortez Masto backed a bill that would end federal taxes on tips, becoming the first Democrats to support the legislation influenced by former President Donald Trump.
The pair of Nevadans signed on as co-sponsors to the bill from Sen. Ted Cruz, Texas Republican, Thursday. The measure is a byproduct of Mr. Trump’s visit last month to Washington, where, in his meeting with congressional Republicans, he pitched the end to taxes on tips.
In a joint statement, the Nevada lawmakers said their state has the highest concentration of tipped workers in the U.S., and they’re hurt by the federal taxes.
Mr. Cruz’s measure would exempt cash tips — cash, credit and debit card charges, and checks — from federal income tax by letting taxpayers claim a 100% above-the-line deduction at filing for tipped wages.
“Getting rid of the federal income tax on tips would deliver immediate financial relief for service and hospitality staff across our state who are working harder than ever while getting squeezed by rising costs,” Ms. Rosen said.
The Nevadans’ support of the bill comes as Ms. Rosen navigates a high-profile reelection campaign against Republican candidate Sam Brown, who has the backing of Mr. Trump. The incumbent maintains a 5-point lead in the polls.
• Alex Miller can be reached at amiller@washingtontimes.com.
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