ASHWAUBENON (NBC 26) — A proposal on the presidential campaign trail could lead to more money in workers' wallets - if they earn tips.
- In the race for the White House, both former President Donald Trump and Vice President Kamala Harris support the idea of no income tax on tips earned by workers like restaurant servers
- Tips earned in Wisconsin are also subject to state income tax
- Watch the video to hear a restaurant server’s reaction to the idea
When more and more people come through the door at Cafe con Crema, it’s a chance for server Adriana Hernandez to earn more money.
“It’s great for all of us, brings more cash home,” Hernandez said of a bustling crowd at the restaurant.
And it’s possible that she could keep more of what she earns.
That’s because, in the race for the White House, both former President Donald Trump and Vice President Kamala Harris support the idea of no federal income tax on tips.
Right now, Hernandez and every other server’s tips are taxed just like any other earned income.
NBC 26 asked her about the idea of getting rid of that tax on tips.
“I would say it’s a good idea,” Hernandez said.
“I mean, more money.”
But she added that some people might think it’s unfair if tips are not taxed.
“[If it takes effect, it would be] a bit difficult for other people I would say,” she said.
A Harris campaign official said Social Security and Medicare taxes would still be paid on earned tips.
Trump recently suggested he's thinking about getting rid of those taxes on tips, too, in addition to scrapping the federal income tax on tips.
All of it would need the approval of Congress.
An owner of Cafe con Crema said he supported the idea of eliminating tax on tips.
“You know, we always want our servers to do well, and you know, if that brings more money for them, I think it’s a good idea,” said Edgar Flores Martinez.
Tips earned in Wisconsin are also subject to state income tax.
