LANCASTER, N.Y. (WKBW) — A proposal to eliminate federal taxes on tips, known as the "No Tax on Tips Act," is gaining attention on Capitol Hill. This could potentially impact workers who rely on tips for their income.
The "No Tax on Tips Act" aims to relieve tipped workers from the burden of federal taxes on their gratuities.
This proposal was discussed at a roundtable hosted by Congressman Nick Langworthy with the Western New York Restaurant Association, where it received support from various stakeholders.
"If people get a gratuity because of the generosity of their patrons because they went that extra mile...they shouldn't have extra penalties on that and be concerned they are going to be hit harder by taxes," Langworthy said as he expressed his support.
Jimmy Butera, owner of Butera's Craft Beer and Pizza, initially had concerns but also expressed his support.
"At the end of the day, it helps put money in the pockets of our workforce which is so important," Butera said.
Kara Kleinfelder, a server at Butera's for six years, told me she supports the effort.
"More money...and it's just like going to the bank to try and get a loan and all of that..it looks like you are making more because you are able to claim it without being worried that it's all taxed out," said Kleinfelder.
The roundtable discussion also addressed concerns about the impact of the proposal on unemployment benefits and the back-of-house staff, with Congressman Langworthy noting that these details need to be ironed out.
As discussions continue, the "No Tax on Tips Act" could significantly affect the financial landscape for tipped workers, with supporters arguing it will enhance their quality of life by allowing them to retain more of their earnings.
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