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IN THE SENATE OF THE UNITED STATES

Senator Vinachelli, on behalf of President Allred and Vice President Van Horn and with thanks to Mr. Hunt, Mr. Cruz and Mr. Cotton, introduces

A BILL

To increase wages and take-home pay for American workers.

SECTION 1. SHORT TITLE.

(a) This act shall be cited as the "Higher Wages Act."

SEC. 2. MINIMUM WAGE INCREASE.

(a) Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended by striking subparagraphs (A) and (B) and inserting the following:

“(A) Beginning on January 1, 2026, the minimum wage for employees shall be not less than $9.50 per hour.

“(B) Beginning on January 1, 2027, the minimum wage for employees shall be not less than $10.00 per hour.

“(C) Beginning on January 1, 2028, the minimum wage for employees shall be not less than $11.00 per hour.

“(D) Beginning on January 1, 2029, the minimum wage for employees shall be not less than $12.50 $12.00 per hour.

“(E) Beginning on January 1, 2030, the minimum wage for employees shall be not less than $14.00 $13.00 per hour.

“(F) Beginning on January 1, 2031, and annually thereafter, the minimum wage shall be automatically adjusted based on the annual percentage increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U), as determined by the Bureau of Labor Statistics.”

SEC. 3. DEDUCTION FOR CASH TIPS. 

(a) In general.—

(1) DEDUCTION ALLOWED.—Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:

“SEC. 224. Cash tips.
“There shall be allowed as a deduction an amount equal to the cash tips received during the taxable year that are included on statements furnished to the employer pursuant to section 6053(a).”.

(2) CONFORMING AMENDMENT.—The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item:

“Sec. 224. Cash tips.”.
(b) Deduction allowed to non-Itemizers.—Section 63(b) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting “and”, and by adding at the end the following new paragraph:

“(5) the deduction provided in section 224.”.

(c) Non-Application of certain limitations for itemizers.—

(1) DEDUCTION NOT TREATED AS A MISCELLANEOUS ITEMIZED DEDUCTION.—Section 67(b) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting “, and”, and by adding at the end the following new paragraph:

“(13) the deduction under section 224 (relating to cash tips).”.

(2) DEDUCTION NOT TAKEN INTO ACCOUNT UNDER OVERALL LIMITATION.—Section 68(c) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting “, and”, and by adding at the end the following new paragraph:

“(4) the deduction under section 224 (relating to cash tips).”.

(d) Withholding.—The Secretary of the Treasury (or the Secretary's delegate) shall modify the tables and procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 to take into account the deduction allowed under section 224 of such Code (as added by this Act).

(e) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024.

SEC. 4. MANDATORY E-VERIFY.

(a) All employers are required to use E-Verify to electronically verify the employment eligibility of new employees within 18 months of this bill's enactment.

(b) If a person or entity fails to utilize E-Verify as required by law, including providing information to the system that the person or entity knows or reasonably believes to be false, such failure shall be treated as a violation of paragraph (1)(A), (1)(B), or (2) of section 274A(a) of the Immigration and Nationality Act (8 U.S.C. 1324a(a)), as applicable.

(c) Employers convicted of hiring unauthorized aliens will be debarred from receiving federal contracts, grants, and cooperative agreements, in addition to existing civil and criminal penalties related to employing unauthorized aliens. 

SEC. 5. ENACTMENT.

(a) Unless otherwise stated, this act shall take effect immediately. 

Quote

PES:

Sec. 2 gradually increases the federal minimum wage for non-tipped employees to $13/hr by 2031

Sec. 3 allows a deduction from gross income (above-the-line tax deduction) for cash tips received by a taxpayer. 

Sec. 4 requires employers to use E-Verify to electronically verify the employment eligibility of new employees within 18 months of this bill's enactment.

Edited by Jack
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Goldie (I-NH), Chief of Vox Libertatis "Choose Freedom"

Vini Vinachelli (R-NJ), Senator from New Jersey | VR | Press "Pater, Filius et Spiritus Sanctus"


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