A proposed legislation by Florida Representative Byron Donalds seeks to revolutionize the way service workers get compensated – sans taxes! The aptly-named ‘No Tax on Tips Act’ aims to let these individuals retain their entire earnings from gratuities, which often form a substantial portion of their overall remuneration.
James Pires, a cook at 10TwentyFive restaurant in downtown Fort Myers, emphasizes the significance of untaxed tips: “At the end of the night, it’s all about your hard work and you know, what you put into the community and how you give back to them. So that is truly a testament to how many tips you receive.” He adds, “I feel like I, you know, I earned that money, you know, through hard work.”
However, under current regulations, both federal income tax and employer deductions chip away at these hard-earned sums. This has left some feeling shortchanged; one worker lamented, “I just feel very discouraged about it, because it kind of like takes away from like, a job that you do. Because you’re giving a percentage of your money to something you don’t even know or see ever.”
Bartender Danielle Fagan echoes similar sentiments: “It’s definitely gut-wrenching. I, you know, I understand, like we should pay on the money that we make, but I just feel like it’s…I wish we didn’t have to,” she says, adding that her regular paycheck amounts to nearly zilch due to reliance on tips alone.
Representative Donalds proposes reversing this trend via his newly-filed bill. In essence, it enables taxpayers to deduct 100 percent of their tipping incomes when submitting returns. As per his official statement, policymakers need to prioritize working-class citizens’ fiscal welfare: “Policymakers must put the needs and financial interests of hardworking Americans first.”
Service professionals interviewed uniformly expressed enthusiasm towards this potential reform. For instance, James Pires believes it’ll translate directly to increased disposable income: “That’s more money in my pocket easier, easier for me to pay my bills.” Meanwhile, fellow mixologist Cody Wessel foresees enhanced morale within the sector if passed: “It would be night and day for me. It would bring a lot of appreciation back to the job itself.”
While optimism abounds among affected parties, passage remains uncertain pending further legislative action. Should the proposal become law, applicability begins January 1st, 2025.
