California Dems kill GOP bid to exempt tips from taxes


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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.

TRUMP PLEDGES TO ELIMINATE TAXES ON TIPS FOR SERVICE WORKERS DURING LAS VEGAS RALLY

California state Capitol on Sunday, July 17, 2022 in Sacramento, California. (Myung J. Chun / Los Angeles Times via Getty Image)

“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.

Kamala Harris giving thumbs up

Flanked by labor union leaders, Democratic presidential candidate Vice President Kamala Harris speaks to union workers during a campaign event on Sept. 2, 2024 at Northwestern High School in Detroit. (Scott Olson/Getty Images)

According to a press…

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