TIP Improvement Act – makes tax relief on tips permanent
Make tax relief on tips permanent.
Occurrences
Congress should deliver a permanent and fair solution that workers so rightly deserve.
To amend the Fair Labor Standards Act of 1938 to adjust the minimum wage for tipped workers and to amend the Internal Revenue Code of 1986 to expand and make permanent the qualified tip deduction.
Evidence
Congressman Horsford said workers were offered “temporary and inadequate relief,” that there was “no permanent solution,” and that Congress should “deliver a permanent and fair solution.” The release also says he introduced the TIPS Act and the TIP Improvement Act this Congress.
Horsford described the TIP Improvement Act as the bill that “makes tax relief on tips permanent,” fixing the marriage penalty, requiring verified TINs, and adding guardrails so the benefit reaches workers.
The bill title and description state that it amends the Internal Revenue Code “to expand and make permanent the qualified tip deduction.” The listed action says Mr. Horsford introduced the bill and it was referred to committee.
Horsford said he would reintroduce the TIPS Act and described his bill as eliminating the sub-minimum wage and providing stronger, permanent relief than the bipartisan No Tax on Tips Act.
The release says Horsford’s TIPS Act would provide permanent relief, unlike Republican proposals that end after four years, and urges House action on tax-on-tips legislation.
“Claims of relief for tipped workers fall short, with no permanent solution and a federal sub-minimum wage still stuck at $2.13.”
“If the relief you are providing is not permanent and does not reach all workers, it is not a solution – it is a headline.”
The page says the TIPS Act, if passed, would apply to taxable years beginning after December 31, 2025, and would eliminate income taxes on tips while ending the subminimum tipped wage.
Assessments
The available evidence shows Horsford actively pursued permanent tax relief on tips by introducing and promoting the TIPS Act and the TIP Improvement Act, including a bill officially introduced in February 2026 to make the qualified tip deduction permanent. But the record provided shows those measures were introduced and referred to committee, not enacted. Horsford’s own April 2026 statements explicitly say there was still 'no permanent solution' and only temporary or inadequate relief existed. Under the scoring rule, a serious legislative attempt that failed to achieve the promised outcome is scored as never, with effort_badge true.