The Beltway Buzz is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what’s happening in Washington, D.C., could impact your business.

POTUS Candidates Want No Taxes on Tips. As the presidential campaign heats up, Vice President Harris and former President Trump have both voiced support for the same policy concept: exempting employee tips from taxation. Harris’s proposal would exempt tips from federal income taxes and raise the federal minimum wage, while Trump’s would exempt tips from both income and payroll taxes. Trump announced his proposal at a June 9, 2024, rally in Nevada, while Harris announced her proposal at an August 10, 2024, rally in—you guessed it—Nevada. The Silver State could play a pivotal role in the November elections—with regard to both the U.S. Senate and White House—and it is perhaps no coincidence that a large number of tipped workers reside there. Some additional thoughts on this “who wore it better” policy proposal are below:

• Just days after Trump’s June 9 announcement, Republican Senators Ted Cruz (TX), Steve Daines (MT), Rick Scott (FL), and Kevin Cramer (ND) introduced the No Tax on Tips Act. The bill would amend the Internal Revenue Code to allow workers to claim a deduction at filing equal to 100 percent of the “cash tips”—cash, credit and debit card charges, and checks—they received during the taxable year. The Democratic senators from Nevada, Jacky Rosen and Catherine Cortez Masto, are...

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