Dear Mrs. xxxx :
Thank you for contacting me regarding the Tax Free Tips Act of 2007 (H.R. 3664). While I have long supported tax relief for America ‘ workers, I believe that this legislation would give an unfair tax advantage to tipped workers.
As you may know, H.R. 3664 was introduced by Representative Ron Paul (R-TX) on September 25, 2007 and awaits action by the House Ways and Means Committee. This legislation would exempt tips and gratuities from federal income and payroll taxes. While tips may be considered part of regular compensation, it is important to recognize that tips are ultimately based on the performance of the worker. As a matter of fairness, I believe that performance-based pay – be it in the form of tips or bonuses – should be accorded the same tax treatment.
While no similar legislation has been introduced in the Senate, please know that I will keep your thoughts in mind should this bill reach the Senate floor.
Thank you once again for contacting me. I appreciate hearing from you and hope you will not hesitate to contact me on any issue of concern to you.
Sincerely,
Norm Coleman
United States Senate
October 25th, 2007 | 
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