Horsford Joined by Lawmakers, Advocates & Tipped Workers for Reintroduction of his Tipped Income Protection and Support (TIPS) Act

WASHINGTON, DC – Congressman Steven Horsford (NV-04) today was joined by fellow lawmakers, wage advocates, and tipped workers from across the country to announce the reintroduction of Horsford’s Tipped Income Protection and Support (TIPS) Act. 

 The TIPS Act would:

• Eliminate the subminimum wage of $2.13 per hour
• End income tax on tips
• Ensure millionaires and billionaires cannot gift their fortunes to family members tax free by claiming it’s a tip

Congressman Horsford introduced the TIPS Act on February 13 (2.13) to coincide with the hourly wage many tipped workers earn. The lawmakers released the following quotes:

“A tip is a gift, not a guarantee, and it’s beyond time that we recognize that in our tax code,” Rep. Horsford said. “Adding insult to injury, many tipped service workers across the country earn a paltry $2.13 per hour with employers counting on tips to make up the difference and ensure a dignified wage. Nevada is helping to lead the nation in eliminating this inhumane subminimum wage, and my TIPS Act would make dignified wages the law across the United States.”

Notably, the TIPS Act prevents exploitation by the rich, and ensures tipped workers continue to contribute to their retirement funds – both of which are absent from proposals recently promoted by President Trump in Las Vegas.

“Las Vegas is the gold standard for work and wages in the hospitality industry and it’s time the rest of the country follows our lead,” Rep. Horsford continued. “If President Trump truly wants to help tipped workers and not the super-rich, then I look forward to his endorsement of the TIPS Act.”

The TIPS Act is co-led by Representative Norcross (D-NJ) and cosponsored by Representatives by Titus (D-NV); Ramirez, C. (D-IL); Lee, S. (D-NV); Cleaver (D-MO), Boyle (D-PA).

“Far too many workers across the United States are struggling to put food on the table and provide for their families. By eliminating the subminimum wage and taxes on tips, we can put more money into the pockets of tipped workers,” Congressman Donald Norcross said. “While there’s still more work to be done when it comes to increasing the federal minimum wage, this legislation marks a pivotal step in the right direction toward ensuring tipped workers get a fair day's pay for a hard day's work."

“My district is home to perhaps the most tipped workers in the country. We must ensure that these individuals are paid a fair wage. All states should follow Nevada’s lead and get rid of the subminimum wage,” Congresswoman Dina Titus said. “The TIPS Act is a responsible step in the right direction, exempting taxes on tips and boosting incomes for those who need it the most. One job should be enough.”

“No one should lose out on the tips they earned, especially while big corporations make record profits,” Congresswoman Susie Lee said. “The TIPS Act will bring immediate relief to working Nevadans and ensures that big corporations and the ultra-wealthy can’t use this as a loophole to avoid paying taxes.”

The legislation is also championed by One Fair Wage, Local Culinary 226, and the Amalgamated Transit Union.

“The last election made one thing very clear: winning elections requires putting the needs of working people front and center,” One Fair Wage CEO Saru Jayaraman said. “Tipped workers—overwhelmingly women and people of color—have been excluded from most minimum wage increases over the last century and, as a result, are living through one of the longest and most severe affordability crises in recent history. While eliminating taxes on tips provides some relief, two-thirds of tipped workers don’t even earn enough to qualify for income tax cuts. That’s why Rep. Horsford’s TIPS Act is so important—it doesn’t just offer tax relief; it eliminates the subminimum wage entirely, ensuring millions of workers are finally paid a full minimum wage with tips on top. Supporting workers means addressing their needs with policies that materially improve their lives, not half-measures—and that must start with raising wages for all workers, including tipped workers, so that no one working full-time is forced to live in poverty.”