Hi, this is Senator Howard Marklein. I represent the 17th Senate District in southern and southwestern Wisconsin.
During the most recent Senate floor session, we passed legislation to exempt tips from state income tax. This legislation works alongside federal law, to exempt up to $25,000 in tips from income tax. Together, these measures ensure that hardworking Wisconsinites keep more of the money they earn.
This legislation, commonly known as “No Tax on Tips,” has received strong, bipartisan support. It was endorsed by both major party presidential candidates, proposed by the Governor in his budget, and passed by Congress last year with unanimous approval by the U.S. Senate.
This legislation gives a meaningful raise to the hardworking men and women in Wisconsin’s essential restaurant and tourism industries. These employees are true members of Wisconsin’s working class: students trying to pay for school, single parents working hard to stretch every dollar, and people picking up a second job to make ends meet. For many, these tips are essential for covering rent, groceries, and car payments.
Letting these workers keep more of their income also helps local businesses in our communities. It effectively gives a raise to our working class. Exempting tips from income tax is a commonsense move that will have an economic impact for Wisconsin’s working families.
Video: https://youtu.be/HyZz-9Is6N0
