GOP Lawmakers File Legislation to Exempt Tips From Federal Taxes

‘Taxing tips is regressive and goes against American tradition,’ Reps. Thomas Massie and Matt Gaetz said in a joint statement.

A waiter works at a restaurant in Alexandria, Va., on June 3, 2022. Olivier Douliery/AFP via Getty Images

Reps. Thomas Massie (R-Ky.) and Matt Gaetz (R-Fla.) introduced a bill on June 18 that aims to amend the Internal Revenue Code of 1986 to make tips exempt from income and employment taxes.

This legislative proposal, titled the “Tax Free Tips Act of 2024,” is designed to alleviate the tax burden on individuals who rely on gratuities as a significant portion of their income.