GOP proposal to exclude tips from taxation in California is defeated by Democrats.

Both former President Donald Trump and Vice President Kamala Harris have advocated for excluding tips from federal taxation.

GOP proposal to exclude tips from taxation in California is defeated by Democrats.
GOP proposal to exclude tips from taxation in California is defeated by Democrats.

The Democratic-controlled legislature in California rejected a Republican proposal to exclude tipped income from state income taxes, which was similar to policies supported by Vice President Kamala Harris and former President Donald Trump.

Republican State Sen. Rosilicie Ochoa Bogh expressed disappointment after her proposal for relief to California's workers was not considered by the legislature.

On Thursday, Ochoa Bogh presented an amendment in California's Senate that would have excluded service industry workers with a state tax exemption on tips from the proposed legislation. However, the proposal was rejected by the Democratic majority without any discussion or debate.

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

"Ochoa Bogh stated that the high cost of living in California puts a strain on the service and hospitality industry employees, who are already struggling with a tax system that does not provide enough support. He emphasized that these employees deserve better and that today's decision is a missed opportunity to help those who need it most."

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)

The California Senate Republicans' proposal aimed to ease the "unsustainable tax burden" faced by service workers who heavily rely on tipped income, resulting in more take-home pay for them.

While almost all the state's Democratic senators except for Senate President Pro Tempore Mike McGuire and State Sen. Nancy Skinner voted in opposition to the amendment, all nine Republican state senators supported it. McGuire and Skinner abstained from the vote.

Trump closeup shot from rally in North Carolina
Former President Donald Trump speaks during a Wednesday campaign event in Asheboro, North Carolina. (Kate Medley for The Washington Post via Getty Images)

"Republican Senate Minority Leader Brian W. Jones stated in a release that the refusal to debate a policy issue of this magnitude due to negligence 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 party’s this year, yet California Democrat politicians don't believe it be even worthy to discuss at the state level for residents here."

McGuire's office declined to comment on the Democratic majority's opposition to the amendment when requested by Planet Chronicle Digital.

by Michael Lee

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