Last night, as House Republicans were working to provide massive tax giveaways to billionaires and big business—paid for by making massive cuts to Medicaid, children’s nutrition, and other vital programs—the Senate passed Senator Ted Cruz’s ill-conceived “no tax on tipped wages” bill. This policy would essentially encourage employers to use anti-worker policies, undermine pay increases, and benefit very few low-wage workers.

“If the GOP were serious about helping working people, they would pass a minimum wage increase, eliminate the subminimum wage for tipped workers, increase pro-worker tax credits like the EITC and CTC, and adopt pro-union policies,” said David Kass, ATF Executive Director. “The Senate’s unanimous passage of the GOP’s disastrous ‘No Tax on Tips’ bill is a serious distraction from the Republicans’ efforts to funnel trillions of dollars to the wealthy by cutting Medicaid, SNAP, and raising costs on workers and families. No one who cares about a tax code that truly favors working people should support measures that will incentivize harmful employer practices and make it harder for workers to secure pay raises. Let’s be clear: only 5 percent of low-wage workers receive tips. This unexpected move caught Senate tax fairness advocates by surprise, and we encourage Senators to focus on highlighting the harmful policies that House Republicans are pushing rather than helping President Trump and Congressional Republicans pass individual aspects of the partisan Republican reconciliation bill.”