The Democrat-controlled California legislature rejected a Republican proposal on Thursday that sought to exempt tipped income from state income taxes. This move comes even as Democratic presidential nominee Kamala Harris has stolen a similar policy suggested by GOP nominee Donald Trump.
The amendment, introduced in the state Senate, aimed to exempt service industry workers from state taxes on tips. The Democratic majority voted against the proposal along party lines, without any discussion or debate, according to Fox News.
Republican State Senator Rosilicie Ochoa Bogh, who introduced the amendment, expressed her disappointment in a press release: “It is deeply disappointing that the legislature chose not to consider a proposal that could have provided much-needed relief to California’s workers.”
Ochoa Bogh continued, “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. They deserve better, and today’s decision is a missed opportunity to support those who need it most.”
California Senate Republicans criticized Democratic lawmakers as “negligent” for refusing to even debate the bill. They noted that both major presidential candidates, former President Donald Trump and Vice President Kamala Harris, have expressed support for federal legislation to exempt tipped income from taxes. Trump first voiced this idea during a campaign speech in Nevada in June, followed by Harris at a campaign event in August.
Republican Senate Minority Leader Brian W. Jones stated, “The negligence involved in a refusal to even debate a policy issue of this magnitude cannot be overstated. 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 parties this year, yet California Democrat politicians don’t believe it to be even worthy to discuss at the state level for residents here.”
Senate Republicans argued that the proposal would have allowed workers who rely heavily on tipped income to keep more of their earnings.
All nine Republican senators in California’s state Senate voted in favor of the amendment, except for State Sen. Nancy Skinner and Senate President Pro Tempore Mike McGuire, who voted against it. Nearly all Democratic senators also opposed the proposal.