California Democrats Refuse 'No Tax on Tips' Bill - Newsweek
Category: News & Politics
Via: texan1211 • one month ago • 37 commentsBy: Giulia Carbonaro (Newsweek)
S E E D E D C O N T E N T
CLOSE X By Giulia Carbonaro US News ReporterFOLLOW
California Democrats killed a Republican proposal to end the state's tax on tips for service workers last week, despite the Democratic presidential nominee, Vice President Kamala Harris, pledging to do the same at the national level should she be elected.
The idea to end federal taxes on tips was originally proposed by former President Donald Trump, the Republican nominee, in June during a rally in Las Vegas, Nevada, where he told service workers that he was going to do that "right away first thing in office because it's been a point of contention for years and years."
Last month, Harris announced the same proposal, capitalizing on the bipartisan support that ending tax on tips seems to have among voters. According to a poll for Newsweek conducted before Harris' announcement, 67 percent of Americans believe that tips given to service workers should not be taxed. The number went up to 68 percent among Republicans and down to 65 percent among Democrats.
An amendment advanced by California Senate Republicans that would have exempted hospitality and service industry workers in the state from being taxed on their tips was "summarily killed" by Democrats on Thursday "without discussion or debate," California State Republicans wrote on their website on August 29. August 31 was the final day of the legislative session for 2024.
"It is deeply disappointing that the Legislature chose not to consider a proposal that could have provided much-needed relief to California's workers," state Senator Rosilicie Ochoa Bogh, who introduced the proposal on the same day, said in a press release.
"The negligence involved in a refusal to even debate a policy issue of this magnitude cannot be overstated," said state Senate Minority Leader Brian W. Jones.
"Legislative Democrats knew they were on the wrong side of this important issue, so they chose to sweep it under the rug rather than do the right thing for working Californians," he added. "The push to eliminate the federal tip tax has made its way to the campaign stage for both major parties this year, yet California Democrat politicians don't believe it be even worthy to discuss at the state level for residents here."
Newsweek contacted the California Democratic Party and the California Senate Republicans for comment by email on Tuesday morning.
Conservative news website The Center Square reported that all Democrats in the California Senate voted to put aside the amendment with the exception of Senate President Pro Tempore Senator Mike McGuire and Senator Nancy Skinner, who abstained. All nine Republicans voted for the measure.
Newsweek contacted McGuire for comment by phone on Tuesday morning.
California State Democrats have not issued a press release explaining why they voted not to discuss the Republicans' proposal to end tax on tips in the state.
In June, the state Legislature approved a budget that slashed spending and temporarily raised taxes on some businesses to close a budget shortfall that's estimated to reach $46.8 billion. As a result of the deficit, the Legislature has had to pass on implementing progressive measures. For example, California Democrats agreed earlier this year to delay a minimum wage increase for health care workers, promised for this summer, to January 2025.
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Going to be hard for Kamala to uphold her promise when even her home state refuses to go along with her plan.
Should be fun to see what concessions are given--billions more for the super-train to nowhere?
There goes Nevada!
In California if you earn less than 50k your tax rate is only 2%. When you figure in the renter's tax credit or the mortgage interest credit most low income Californians pay nothing or get more in their refund than they paid in.
The only tipped employees that could even be affected by this would be those who work in fancy high end restaurants and make really good money and even then the rate would only be 4% unless they're making more than 100k or so.
This has nothing to do with federal taxes.
My point is that Harris might have a hard time instituting her plan if she can't even get California Democrats to support it in their own state.
The Democrats I know support it. Like I said, this has nothing to do with federal taxes. As I understand it Harris' plan will help millions and millions of American workers while the CA Senate bill won't help the people who need it most at all.
Then it is obvious you don't know any of the Democrats who shot it down.
It’s cool. I’m just gonna stop tipping. Food prices are going through the sky as minimum wage for some hits $20/hour. $20 an hour to fuck up your order. And then they want a tip. It’s ridiculous.
I want a law that prohibits credit card scanners from even asking me for a tip. And if there were a way we could just outlaw tips, I would probably support it. I bought my wife and I some pretzels yesterday. It took maybe 10 seconds for this kid to grab two pretzels with his tongs and put them in a paper bag. Then they want a tip. For what? Doing the easiest job in the world?
Around here, credit/debit cards with tip scans never go to the wait staff. It goes to the establishment Not sure what they do with it but I know the tip part of the bill never shows up on my bank statement. My wife and I have decided to always tip in cash now.
I dont think people making 20 dollars an hour should be tipped, but a 12.00 an hour they probably need help.
I am pretty sure those stats aren't California's.
Find a second or better job.
If everyone finds a "better" job who will make your Whopper ?
Entry-level new college students for one. How about seniors who could use a supplement as well as something of some importance to do? That is what they are for to begin with.
I dont think many seniors would find working as a cashier at a McDonalds is "important" for them to do.
If they would like to stay in contact with the outside world, it would be an avenue. My uncle worked sacking groceries when he retired to do just that. He sure as hell didn't need the money after 35 years at GM as a Union Steward.
I know a few seniors that still work part time just to cover their supplemental health plans and go on a vacation.
There are certain times I will not tip:
Any other time the quality of the service and food will determine if I tip.
Me also.
totally fair.
I bet if there had been something in it for free for illegal aliens, California Democrats wouldn't have been able to pass it fast enough.
California has a billion dollar deficit they need to make up for. I'm surprised they haven't started taxing more.
I believe the data shows Cali has lost many high-income folks to other states. Can't tax the ones who leave, although I heard something about an "exit' tax in Cali!
That "exit tax" is pure bullshit. Companies have to pay a tax to move their operations / offices somewhere better suited for them.
I wonder how long before one of those idiots proposes an 'EXIT' tax on the dead for cremation fees (bad for the environment) or 'ground fees' for some reason or another.
They could tax non-electric hearses extra.
Don't give them any ideas.
Leave nothing untaxed seems to be the state motto, and even with that, they can't balance the state budget.
My wife and I eat at an upscale restaurant twice a month, the bill is always over $100. I don't select the tip option when paying with my credit card or leave a tip on the table.. We hand cash to the waitperson, that way they don't get taxed on it.
Why should any ordinary income go unrecognized? The IRS wants to know all about a camera I sell, at a loss, on eBay, that I lost the cost documentation for long ago, yet some segment wants to be paid in Menendezmoney?
Not sure this is going to fly with the servers and bartenders, especially in the larger cities where tips are substantially higher but so is the cost of living.
Might be hard to explain to voters why a tax break for some of the lowest-paid workers in America is a bad thing.
If they need financial help, that’s ok - even desirable - but let’s get it all on paper and play by the same rules. The hodgepodge of $2.13 an hour and all the cash you can grab while keeping social welfare benefits is the unfair part of the racket. Get it all out in the open and there won’t be such a surprise at retirement time when they find out that $800 a month doesn’t go very far.
I get it. Just seems this would have a great effect on the 18-24 range voters who seem to favor Democrats.
Don't want to give workers a little break on tip money but give $150,00 to illegals for a house, California has priorities mixed up
The idea to end federal taxes on tips was originally proposed by former President Donald Trump, the Republican nominee, in June during a rally in Las Vegas, Nevada, where he told service workers that he was going to do that "right away first thing in office because it's been a point of contention for years and years."
Instead of doing something to benefit minimum wage workers his first time in office, he gave away billions to millionaires and billionaires in return for exploding our national debt. Yeah, trust that guy.
Well, now that we have the obligatory, ever-present "But Trump" comment made as expected, let's move on.
Tell us all the great things the Biden/Harris Admin. has told you they have done for you.
Lol - I quoted directly from your seed, about how Trump was the origin of the proposal. Along comes you pretending that Trump is somehow irrelevant. Do you read these articles before you seed them?
A blatant falsehood, of course.
I read AND understand everything I post.