A bill aimed at supporting those who work for tips has taken its first step towards becoming a law.
The No Tax on Tips Act, authored by Senator Andre Jacque of New Franken and Manitowoc Representative Ron Tusler, has passed the Assembly Committee on Ways and Means on a bipartisan 8-2 vote.
A similar legislation was proposed in 2019, but it failed to make it through the legislative process.
Sen. Jacque noted that the bill, known officially as Assembly Bill 38, “will help high school students, young adults working their way through college, parents from single-income homes, and many others among Wisconsin’s working class who depend upon income they receive from tips in exchange for excellent service.”
The bill 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.
He also pointed to the fact that both presidential candidates in the last election supported the idea, and that a 2024 Ipsos poll showed that 71% of Americans supported the concept.
AB 38 will now go to the full Assembly for a vote.
