LAS VEGAS (KTNV) — President Trump promised an end to taxes on tipped income during a campaign visit to Las Vegas in June.
The idea was immediately adopted by Democrats, including his then-rival, Democratic Vice President Kamala Harris. Several members of Nevada's congressional delegation backed the idea as well.
WATCH | Channel 13's Steve Sebelius explains the differences between the two bills in Congress
Trump later credited the promise with his victory in Nevada, the first time he'd ever won the state in three elections.
And now, Trump is closer than ever to seeing his promise kept; two versions of the tax benefit have passed in Congress.
On Thursday, the House passed its budget reconciliation bill, which includes a version of no taxes on tips. The House version only eliminates the tax for four years, requires a valid Social Security number to claim the deduction and prohibits people making more than $160,000 from claiming it.
On Tuesday, the Senate passed a standalone bill, sponsored by Sens. Ted Cruz, R-Texas, and Jacky Rosen, D-Nev. That bill only allows $25,000 per year in tipped income to be deducted from taxes, but would make the benefit permanent.
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Nevadans closer to 'No Tax on Tips' as bill passes through US Senate
U.S. Sen. Catherine Cortez Masto said Thursday she prefers the Senate version.
"I think it's crucial that we pass out version that we passed out of the Senate, the No Tax on Tips," she said. "Here's why: Our version makes it permanent. The one that is in reconciliation right now is temporary."
There's another reason the Democrats might prefer the clean bill to one that's merely a feature of the larger House budget package: the latter bill contains cuts to health care and social services that Democrats plan to vote against.
"A lot of the benefits to hardworking Nevadans, people that are in the middle class, they're part of our service industry, a lot of the benefits and the tax cuts that they're seeing in the [House] reconciliation bill are temporary," Cortez Masto said. "But the tax cuts for the big corporations and the billionaires are permanent. That, to me, is a non-starter."
The Senate-passed version now goes to the House for consideration, while the House bill will be taken up by senators, and will very likely amended.
Politically, the issue is fraught, because Republicans can accuse House Democrats of voting against tax relief for tipped workers, even though Democratic objections were to other parts of the budget bill. Senators passed their version unanimously, so Democrats there won't face a similar accusation.
Meanwhile, Nevada Congressman Steven Horsford has his own version of the no tax on tips idea. His bill would also make the tax deduction permanent, but unlike the other versions, it would also eliminate the subminimum wage, which can see restaurant workers in some states paid as little as $2.13 per hour.
WATCH MORE: Congressman Steven Horsford pushes for no taxes on tips with some changes
The Horsford bill also would contain penalties for employers who keep or misuse employee tips, and includes definitions of industries that traditionally receive tips, including hospitality, restaurants and cosmetology. (The Senate and House version ask the government to research and publish a list of traditionally tipped occupations.)
Horsford's measure is still in the House, and with Republicans in control isn't likely to pass.
