Democratic Senators Discreetly Sign Onto Republican “No Tax on Tips” Measure

(PatriotWise.com) — Nevada’s two Democratic senators signed onto Texas Senator Ted Cruz’s proposed legislation that would end federal taxation of tips.

Last month, Cruz introduced the No Tax on Tips Act to exempt tips from being taxed by the federal government. The measure, which is endorsed by various industry groups, including the National Restaurant Association, is co-sponsored by Republican Senators Steve Daines of Montana, Kevin Cramer of North Dakota, and Rick Scott of Florida.

Nevada Democratic Senators Catherine Cortez Masto and Jacky Rosen became the first Democrats to co-sponsor the bill, likely due to pressure from Nevada’s influential Culinary Workers Union.

Senator Rosen initially criticized Republican nominee Donald Trump when he first proposed exempting tips from federal taxes during a campaign rally in Las Vegas last month. She described Trump’s proposal as an “empty talking point” from a “self-serving” politician.

However, in a July 12 joint statement, Rosen and fellow Nevada Senator Cortez Masto announced that they had co-sponsored Cruz’s bill, noting that their state had “the highest concentration of tipped workers” in the United States.

The Democrat senators said that the No Tax on Tips Act was just one of many possible solutions, along with raising the minimum wage and enforcing the tax code for wealthy Americans and corporations, to achieve tax fairness.

While many Republicans, including Rosen’s challenger Sam Brown, support the proposal, some expressed concern over the negative impact the loss of tax revenue would have on the deficit.

Democrat lawmakers like Nevada Rep. Susie Lee have said that while they were open to the idea, they did not trust Donald Trump to act on his proposal.

The Democrat-aligned Culinary Union in Las Vegas said it supported Senator Cruz’s legislation but suggested that the proposal was a “hail Mary” by the Trump campaign.

At the same time, the union’s secretary-treasurer, Ted Pappageorge, applauded Senators Rosen and Cortez Masto for signing onto the legislation, which he said would “provide relief to hospitality workers in Nevada.”