Congressman Derek Tran Leads Effort to Expand Tax Savings for Service Workers

Tran, who worked at Olive Garden, McDonald’s, and other restaurants while putting himself through college and law school, knows firsthand what this economic benefit will mean to 70k service workers and their families in CA-45

Garden Grove, CA – In a major legislative effort to deliver economic benefits to working families, frontline candidate and Democratic nominee Derek Tran cosponsored the Tipped Income Protection and Support Act (TIPS Act) to expand permanent tax savings for service workers.

The TIPS Act would permanently increase the maximum amount that service workers can deduct from an adjusted gross income of $25,000 to $112,500. This legislation applies to cosmetology, hospitality, food and beverage, parking, and custodial service employees.

“Like so many Americans, I relied on the tips I earned as a restaurant server to afford groceries and housing,” said Congressman Tran. “I know the importance of this source of income. That’s why I support the effort to expand tax savings for service workers and fix the loopholes in the Republicans’ temporary and weak ‘No Tax on Tips’ provision. The TIPS Act will bring economic benefits to nearly 70,000 service industry workers in Southern California and ensure Republicans won’t get away with their temporary gimmick.”

Congressional Republicans’ “No Tax on Tips” provision in H.R.1 is set to expire at the end of 2028, leaving behind millions of service industry workers with an impending economic fallout.

Congressman Tran is a steadfast advocate for working families in California’s 45th Congressional District. In his first term, Tran expanded affordable housing construction, lowered costs of skyrocketing healthcare prices, secured critical investments in public safety, and supported local small businesses.

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Congressman Derek Tran Leads Effort to Expand Tax Savings for Service Workers