California Democrats Vote Against “No Tax On Tips” Proposal, Here’s Why It’s A Big Deal

California Democrats have voted down a Republican proposal to end a tax on tips.

The move by California Democrat lawmakers is quite significant, considering Kamala Harris recently copied Donald Trump’s idea to stop taxes on tips.

California’s Senate Republican Caucus was shocked by the Democrat’s decision to strike down the bill and wrote, “Even Trump and Harris both say we should eliminate the ‘tip tax.’”

Democrat state lawmakers in California claimed the $47 billion budget shortfall this year is a prime reason why tax on tips cannot be eliminated.

BREAKING: California Republicans followed former President Trump’s lead by proposing to end taxes on tips, only for the proposed amendment to be shot down by California Democrats.

— Leading Report (@LeadingReport) September 1, 2024

Here’s what Breitbart reported:

California Democrats voted down a Republican proposal last week to end the state’s tax on tips, casting Vice President Kamala Harris’s commitment to the policy in doubt.

As Breitbart News noted, former President Donald Trump has championed the idea of ending taxes on gratuities for months. Harris copied the proposal last month, seeking to capitalize on the popularity of the idea.

ADVERTISEMENT

In a mirror of national politics, California Republicans followed former President Donald Trump’s lead by proposing to end taxes on tips.

While Vice President Kamala Harris, who formerly represented California in the U.S. Senate, embraced the measure, California Democrats said no, shooting down the proposed amendment in the California Senate.

“Even Trump and Harris both say we should eliminate the ‘tip tax,’” said the California Senate Republican Caucus in a statement.

Trump has said that while Harris is copying his “no tax on tips” idea, only he will actually pass it. Republicans say they are ready to pass it through Congress if he wins the election.

California views taxes as THEIR MONEY…not the tax payer's money. No way they're giving up a dime! https://t.co/U2hW7ed9yI

— 🅿️®️🚫❌✌🏾 (@proxcee) September 2, 2024

Per The Center Square:

The bipartisan Committee for Responsible Federal Budget says this proposal would likely reduce government revenue by approximately $15 to $25 billion per year.

In the California Senate, Democrats — except for Senate President Pro Tempore Senator Mike McGuire, D-Healdsburg, and State Sen. Nancy Skinner, D-Berkeley, who abstained, voted to put aside the amendment, while all nine Republicans voted for it.

With the legislature having narrowly closed a $47 billion budget shortfall this year through cuts, deferrals, and shifts, it’s unclear what additional measures the state would need to take to offset revenue losses from a potential state-level exemption.

California Democrats Vote Down ‘No Tax on Tips’ Bill Proposed by the Republicans https://t.co/aFkWOcCj8M

— Ben Owen (@hrkbenowen) September 2, 2024