In a passionate speech on the House floor Wednesday, Representative Alexandria Ocasio-Cortez (D-N.Y.) criticized the $25,000 cap on the “no tax on tips” provision included in the Senate-passed version of President Trump’s massive spending and tax bill.
Her remarks came amid a heated debate over the reconciliation package, which has reignited discussions about economic justice for low-income workers.
“As one of the only people in this body who has lived off of tips, I want to tell you a little bit about the scam of that text,” Ocasio-Cortez stated, emphasizing the challenges faced by service workers.
She underscored the financial struggles many face, particularly those earning less than $50,000 annually.
The congresswoman pointed out that while the cap on tip deductions may seem beneficial, it comes at a steep price.
“You’re jacking up taxes on people who make less than $50,000 across the United States, while taking away their Supplemental Nutrition Assistance Program (SNAP), while kicking them off of the Affordable Care Act and their health care extensions,” she said, highlighting the broader implications of the proposed legislation.
Legislative Context: The Reconciliation Package
The reconciliation package, which returned to the House after Vice President Vance cast a tie-breaking vote, includes a controversial $25,000 cap on tips that workers can claim as deductions.
This provision differs from the House bill passed in May, which did not impose a cap under the “no tax on tips” initiative—one of Trump’s key campaign promises.
While the GOP policy bill does not raise tax rates for low-income workers, nonpartisan policy analyses suggest that after accounting for benefit cuts, many workers could see a decrease in their take-home pay.
Ocasio-Cortez’s Call to Action
“Is that worth it to you—losing all your health care, not being able to feed your babies?” Ocasio-Cortez asked rhetorically, urging her colleagues to consider the real-life implications of the bill on American families.
“This bill is a deal with the devil,” she declared, criticizing it for exacerbating the national debt, militarizing the economy, and stripping away basic health care rights.
She continued, “For what? To give Elon Musk a tax break and billionaires more wealth?”
Her remarks resonated with many who advocate for economic equity and social justice.
Ocasio-Cortez’s strong opposition reflects a broader strategy among progressive Democrats to apply pressure to Republican holdouts in battleground districts, particularly regarding cuts to Medicaid and food assistance programs.
Speaker Mike Johnson (R-La.) faces mounting challenges as he attempts to unite the GOP to pass the bill before the self-imposed July 4 deadline.
The Fight for Workers’ Rights
As the debate over the reconciliation package continues, Ocasio-Cortez’s passionate defense of low-income workers shines a spotlight on the urgent need for policies that prioritize the needs of the most vulnerable in society.
The implications of the proposed tax changes extend beyond mere numbers; they represent the livelihoods of countless Americans who rely on tips to make ends meet.
With a critical eye on the legislative process, the coming days will determine whether the voices advocating for worker rights can effectively influence the outcome of this contentious bill.
Also Read: Pro Trump Farmers Now Admit They Can’t Find American Workers
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