A local legislator is among a group of four in Madison who are looking to make cash tips tax-exempt.
Senator Andre Jacque of De Pere is joined in pushing the bill by 28th District Senator Julian Bradley, 5th District Senator Rob Hutton, and Assembly District 3 Representative Ron Tusler.
In Wisconsin, tipped employees make up a large amount if the workforce in various service industries throughout the state, particularly in the hospitality and tourism sectors.
Many of these employees are high school students, young adults working their way through college, and parents from single-income homes.
The group says that the bill would “allow for a state income exemption on cash tips earned by an employee. This change would give a raise to Wisconsin workers by letting them keep more of their hard-earned money in their pocket.”
They also noted that if passed, the measure would not affect the day-to-day operation of businesses utilizing current federal tip tax credits, as the proposal only adjusts how individual employees would file their state taxes.
If passed, Wisconsin would be the first state in the country to create a state income tax exemption for cash tips paid to employees.
