California’s Democratic-controlled legislature has rejected a Republican proposal that would have exempted tip income from state income taxes, nullifying a policy proposal similar to those backed 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 workers,” Republican state Sen. Rosilicie Ochoa Bogh, who introduced the measure, said in a news release after it was defeated.
Ochoa Bogh on Thursday introduced an amendment in the California Senate that would have exempted service industry workers from state tip taxes, but the proposal was rejected in a largely party-line vote without discussion or debate by the Democratic majority.
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California State Capitol on Sunday, July 17, 2022, in Sacramento, California. (Myung J. Chun/Los Angeles Times via Getty Image)
“Californians face one of the highest costs of living in the country, and employees in our service and hospitality sectors are especially burdened by a tax system that forces them to struggle to make ends meet,” said Ochoa Bogh. “They deserve better, and today's decision is a missed opportunity to support those who need it most.”
The push to exempt tips from taxes in the state comes at a time when both Trump and Harris have expressed support for federal tax legislation that would exempt tip income on the campaign trail. Trump was the first to champion the proposal during a June rally in Nevada, while Harris, who began her political career in California, echoed a similar sentiment during an August rally in Las Vegas.
Surrounded by union leaders, Democratic presidential candidate for vice president Kamala Harris speaks to union workers during a campaign event Sept. 2, 2024, at Northwestern High School in Detroit. (Scott Olson/Getty Images)
According to a press release from California Senate Republicans, the proposal in that state was intended to help service workers navigate California's “unsustainable tax burden” by allowing workers who rely heavily on tip income to earn more take-home pay.
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All nine of the state's Republican senators supported the amendment, while nearly all of the state's Democratic senators, except for Senate President Pro Tempore Mike McGuire and state Sen. Nancy Skinner, voted against it. McGuire and Skinner voted to abstain.
Former President Donald Trump speaks during a campaign event Wednesday in Asheboro, North Carolina. (Kate Medley for The Washington Post via Getty Images)
“The negligence of refusing to even debate a policy issue of this magnitude cannot be overstated,” Senate Minority Leader Brian W. Jones, R-Ky., said in the statement. “Legislative Democrats knew they were on the wrong side of this important issue, so they chose to sweep it under the rug instead of doing what's right for California workers. The push to eliminate the federal tip tax has reached the campaign stage of both major parties this year, but California's Democratic politicians don't believe it's worth even discussing at the state level for California residents.”
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McGuire's office did not immediately respond to a request from Fox News Digital for comment on the Democratic majority's opposition to the amendment.
