ASHWAUBENON (NBC 26) – A proposal from the presidential campaign could result in workers getting more money in their wallets – if they get tips.
- In the race for the White House, both former President Donald Trump and Vice President Kamala Harris support the idea of not taxing tips from restaurant waiters.
- Tips earned in Wisconsin are also subject to state income tax
- Watch the video to hear a restaurant waiter’s reaction to the idea
As more and more people come through the door of Café con Crema, it’s an opportunity for waitress Adriana Hernandez to earn more money.
“It’s great for all of us and brings home more money,” Hernandez said of the hustle and bustle at the restaurant.
And it’s possible that she can keep more of what she earns.
The reason for this is that both former President Donald Trump and Vice President Kamala Harris supported the idea of not taxing tips at the federal level during the race for the White House.
Currently, Hernandez’s tips and those of all other waiters are taxed just like any other earned income.
NBC 26 asked her about the idea of eliminating this tax on tips.
“I would say it’s a good idea,” Hernandez said.
“I mean, more money.”
However, she added that some people might think it was unfair if tips were not taxed.
“(If it works, it would) be a little difficult for other people, I would say,” she said.
A Harris campaign official said Social Security and Medicare taxes would continue to be paid on tips earned.
Trump recently indicated that in addition to eliminating the federal income tax on tips, he is also considering eliminating these taxes on tips.
All of this requires the approval of Congress.
An owner of Café con Crema said he supports the idea of eliminating the tax on tips.
“We always want our servers to run well, and if that makes them more money, I think it’s a good idea,” said Edgar Flores Martinez.
Tips earned in Wisconsin are also subject to state income tax.
