Virginia Governor Glenn Youngkin (R) announced a proposal to eliminate the tax on tips in the service industry, saying it would put an estimated $70 million annually “into the pockets of hardworking Virginians.”
Youngkin made the announcement Monday during a visit to MacLean's Restaurant in Richmond.
“There is no tax on tips,” he told reporters, drawing applause from restaurant staff and patrons.
If the budget, which the governor plans to submit in full on Wednesday, is successful, Virginia will become the first state in the nation to eliminate state income tax on tips.
“Tipping tax exemption will be a cornerstone of the overall budget proposal submitted this week,” Youngkin said. “I think this should be done on a bipartisan basis in taking care of these people, and I look forward to working with members of the General Assembly to do that. But we also want to reduce the tax burden on hardworking Virginians. Just realize that the time has come.”
The proposal would target not only restaurant servers but also people in other service jobs that rely heavily on tips, such as hairstylists and hospitality workers.
Elaine Cunningham, who has worked at MacLean's Restaurant for more than 10 years, said Youngkin's proposal would help her and her four children.
“The majority of what we make is tips. We don't see or receive a paycheck. You know, we don't consider our hourly wages to go straight to taxes. ” she said. said WWBT.
“It's going to make a big difference in all of our lives and it's definitely going to be a big boost to our pockets. It's been life changing,” she added.
Restaurant owner Diona Kelleher said the measure would also help small businesses by lowering payroll taxes.
“Ultimately it helps me as a small business owner when everything else gets tough. So I'm grateful and I hope that happens,” Kelleher said. spoke.
“This is a great way to ensure that the tips you leave this morning go to this hard-working, wonderful group of people who make this facility so special. So that they can put it in their own pockets instead of in their pockets. The money is theirs,” Youngkin added during his visit to the facility.
a statement from his office said The proposal would “put an estimated $70 million annually back into the pockets of hardworking Virginians, further realizing Governor Yonkin's promise to reduce the cost of living for working families across the commonwealth.” , which builds on more than $5 billion in tax cuts already provided to Virginia under his administration. ”
