Kevin O’Leary, chairman of O’Leary Ventures, shares his thoughts on former President Trump’s proposal to eliminate taxes on tips. He also discusses Vice President Kamala Harris’ economic plan and speculates on how the Democratic Party might respond if Harris were to lose.
The Democratic-controlled legislature in California rejected a proposal put forth by Republican proposal to exempt tipped-income from state income taxes. This policy proposal aligns closely with previous endorsements made by Vice President Kamala Harris and former President Donald Trump.
“It is truly disheartening that the legislature made the decision to overlook a proposal that had the potential to offer essential assistance to the workers of California,” expressed Republican State Sen. Rosilicie Ochoa Bogh in a press release following the defeat of the measure.
RELATED STORIES
On Thursday, Ochoa Bogh presented an amendment in Republican proposal. The amendment aimed to provide service industry workers with a state tax exemption on tips. However, the proposal was voted down by the Democratic majority without any discussion or debate, mostly along party lines.
During a rally in Las Vegas, President Trump made a pledge to eliminate taxes on tips for service workers. This commitment aims to provide relief and support for those in the service industry.
The California state Capitol in Sacramento, California, was bustling with activity on Sunday, July 17, 2022. The vibrant atmosphere filled the air as people went about their business in this iconic location. The image captured by Myung J. Chun / Los Angeles Times via Getty Image perfectly encapsulates the energy and significance of this historic site.
According to Ochoa Bogh, Californians are grappling with one of the highest costs of living in the country. In light of this, employees in the service and hospitality industry are especially burdened by a tax system that makes it difficult for them to make ends meet. Ochoa Bogh believes that these hardworking individuals deserve better, and she sees the recent decision as a missed opportunity to provide support to those who need it the most.
Both Trump and Harris have expressed support for federal tax legislation that would exempt tipped income on the campaign trail. Trump first championed the proposal during a June rally in Nevada, while Harris, who began her political career in California, echoed a similar sentiment during an August rally in Las Vegas. The attempt to exempt tips from taxes in the state aligns with their shared support for this policy.
Vice President Kamala Harris addressed a crowd of union workers at Northwestern High School in Detroit on September 2, 2024. She was accompanied by labor union leaders, emphasizing her support for the working class. (Scott Olson/Getty Images)
California Senate Republicans recently released a press statement, highlighting their proposal to assist service workers in managing the state’s “unsustainable tax burden.” The goal of this proposal is to enable workers who heavily rely on tipped-income to have a higher take-home pay.
Republicans criticize the Biden administration’s proposal to tighten regulations on tips for waiters.
All nine Republican state senators backed the amendment, whereas the majority of the state’s Democratic senators voted against it, with the exception of Senate President Pro Tempore Mike McGuire and State Sen. Nancy Skinner, who chose to abstain from voting.
Former President Donald Trump addressed a campaign event in Asheboro, North Carolina, on Wednesday. (Kate Medley for The Washington Post via Getty Images)
“The refusal to even debate a policy issue of this magnitude is a clear display of negligence,” expressed Republican Senate Minority Leader Brian W. Jones. “Legislative Democrats were aware that they were taking the wrong stance on this crucial matter, but instead of doing the right thing for the hardworking people of California, they chose to sweep it under the rug. Despite the fact that the push to eliminate the federal tip tax has become a campaign issue for both major parties this year, California Democrat politicians seem to believe that it is not even worth discussing at the state level for the residents here.”
To access the Fox News app, simply click here.
McGuire’s office did not respond immediately to a request for comment from Fox News Digital regarding the Democratic majority’s opposition to the amendment.
