California Dems kill GOP bid to exempt tips from taxes
California’s Democratic-controlled legislature axed a Republican proposal that would have exempted tipped-income from state income taxes, striking down a policy proposal similar to ones endorsed by Vice President Kamala Harris and former President Donald Trump.
"It is deeply disappointing that the legislature chose not to consider a proposal that could have provided much-needed relief to California’s workers," Republican State Sen. Rosilicie Ochoa Bogh, who introduced the measure, said in a press release after it was defeated.
Ochoa Bogh introduced the amendment in California’s Senate on Thursday that would have exempted service industry workers with a state tax exemption on tips, but the proposal was voted down on a mostly party line vote without discussion or debate by the Democratic majority.
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"With Californians facing one of the highest costs of living in the nation, our service and hospitality industry employees are particularly burdened by a tax system that leaves them struggling to make ends meet," Ochoa Bogh said. "They deserve better, and today’s decision is a missed opportunity to support those who need it most."
The attempt to exempt tips from taxes in the state comes as both Trump and Harris have expressed support for federal tax legislation that would exempt tipped-income on the campaign trail. Trump was the first to champion the proposal during a June rally in Nevada, while Harris, who started her political career in California, echoed a similar sentiment during an August rally in Las Vegas.
According to a press release by California Senate Republicans, the proposal in that state was aimed at helping service workers navigate California’s "unsustainable tax burden," allowing workers who rely heavily on tipped-income to have more take-home pay.
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All nine Republican state senators supported the amendment, while almost all the state’s Democratic senators, except for Senate President Pro Tempore Mike McGuire and State Sen. Nancy Skinner, voted in opposition. McGuire and Skinner voted to abstain.
"The negligence involved in a refusal to even debate a policy issue of this magnitude cannot be overstated," Republican Senate Minority Leader Brian W. Jones said in the release. "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. The push to eliminate the federal tip tax has made its way to the campaign stage for both major party’s this year, yet California Democrat politicians don’t believe it be even worthy to discuss at the state level for residents here."
McGuire’s office did not immediately respond to a Fox News Digital request for comment on the Democratic majority’s opposition to the amendment.