The Wisconsin Senate has passed a bill that aligns with a federal law.
A bill that would exempt tips and overtime from tax would create an income tax exemption for cash tips received by an employee from customers, up to $12,500 for a single person and $25,000 for a couple.
In the Assembly, the bill is co-sponsored by State Representative Paul Tittl, who says the bill is very important.
He stated, “That goes directly into the pockets of the people that are providing services on the day to day basis for you and I.”
Some listeners on WOMT’s Be My Guest program asked Tittl why Wisconsin doesn’t raise the minimum wage for workers in the industry that get tips.
Tittl says if the minimum wage is raised, everything will cost more.
He also says businesses won’t be able to hire people.
“Let’s say you wanted to hire somebody to do siding,” he outlined. “Nobody is going to work for seven and a half bucks an hour or even sweep your sidewalk; they wouldn’t pay seven and a half bucks an hour. I don’t know about raising it. I think it’s already above that, and we’ll leave it alone.”
Another person commented on the Social Security tax paid on the tips, asking what can be done.
Tittl noted that’s a federal issue and not something the state can control.
The bill has been received from the Wisconsin Senate and could be approved in the Wisconsin Assembly in the future.
It’s not clear if Governor Tony Evers would sign the bill.
