Horsford, Nevada Dems to Trump Admin: Address Barriers to ‘No Tax on Tips’
August 13, 2025
North Las Vegas – Congressman Steven Horsford (NV-04) today joined U.S. Senators Cortez Masto (D-NV) and Rosen (D-NV) and Representatives Titus (NV-01) and Lee (NV-03) in sending a letter to U.S. Treasury Secretary and Acting Internal Revenue Service (IRS) Commissioner Scott Bessent calling on the Trump Administration to address barriers in implementation of the ‘No Tax on Tips’ provisions that would hurt tipped workers in Nevada.
Horsford previously led Reps. Titus and Lee in a letter to Secretary Bessent on July 25 (attached) requesting that Treasury enact safeguards to prevent waste, fraud and abuse, and urging the list of eligible occupations include traditionally and customarily tipped industries like cosmetology, hospitality, food and beverage service, parking attendants, and custodial services.
In today’s letter, the lawmakers wrote, in part:
“As you know, H.R. 1, an Act to provide for reconciliation pursuant to title II of H. Con. Res. 14, provided that certain taxpayers may take a deduction of up to $25,000 annually to reduce or eliminate taxable income on tipped wages. This proposal closely models legislation introduced or cosponsored by Nevada lawmakers in both the House and Senate. As you know, Nevadans rely on tips more than any other state in the nation and tax relief has been a critical bipartisan priority. Given our work on proposals related to Section 70201, we would like to highlight the following issues for the Department of Treasury in order to ensure the successful implementation of this provision for our constituents and tipped workers across the country.”
Specifically, the Members call on the administration to:
- Provide withholding as soon as practicable to ensure taxpayers feel tax relief this year
- Maintain Gaming Industry Tip Compliance Agreements (GITCA) and related programs
- Provide the ability for employees under a GITCA to take the tips deduction based on their tip rate if they choose
- Include as eligible for the deduction tips from transactions with auto-gratuities or suggested tip amounts
- Allow married individuals who file with a SSN on a joint return to be eligible for the deduction, regardless of the filing method of their spouse and allow up to $50,000 in deductions for married couples
- Provide maximum clarity for filers regarding how to determine what occupation they serve in and how to determine eligibility for the deduction
- Issue regulations that allow the ability of performing artists to use the deduction when their occupation otherwise has traditionally received tips
Read the full letter here.
Rep. Horsford is the author of the TIPS Act, which is the strongest proposal in Congress to protect tipped workers from taxes.
As the House of Representatives considered H.R. 1, Horsford repeatedly called for robust protections for tips, including a letter to Speaker Johnson urging him to make the proposal bipartisan.
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Issues:EconomyPublic Safety