Today, California Senate Republicans advanced amendments to protect hospitality and service industry employees with a state tax exemption on tips. Legislative Democrats refused to consider the issue and summarily killed the proposal without discussion or debate. Click HERE to watch Senator Ochoa Bogh's floor remarks and click HERE to view/download the roll call vote on the amendments.
“It is deeply disappointing that the legislature chose not to consider a proposal that could have provided much-needed relief to California’s workers,” said Senator Rosilicie Ochoa Bogh (R-Yucaipa), who put forth the amendment. “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.”
The proposal, which was aimed at addressing the unsustainable tax burden placed on workers who rely heavily on tips, would have exempted those tips from state income taxes and allowed hospitality and service industry employees to take home more of their earnings. Proponents of the policy point to not only relief for taxpayers as a benefit but also increased spending that would result from those tax breaks and serve as an economic driver to lift all sectors of the economy.
"The negligence involved in a refusal to even debate a policy issue of this magnitude cannot be overstated,” said Senate Minority Leader Brian W. Jones (R-San Diego). “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.”