Should Wisconsin's Cash Tips Be TAX FREE?

Lawmakers seem to think so...

May 7, 2019

Tipping is obviously a hot button topic - especially those that work in the service industry and RELY on tips, because their base pay is somewhere in the ballpark of $2-3/hour.  

Uncle Sam obviously wants a piece of your money, so those servers have to CLAIM their cash tips as it stands.  So the little money they are making is even less...

A couple of Wisconsin Lawmakers are trying to change that.  

The bill, currently being circulated for sponsors was written up by Republican State Senator Andre Jacque of De Pere and Republican Representative Cody Horlacher of Mukwonago.

Under the proposal - people would still have to report their tips federally, but they would be exempt from taxes.  

If it were up to me - I'd just raise the wages we pay servers, give them $10-15 / hour depending on the hour, raise your menu prices slightly, and be up front with your customers about the fact that you COMPENSATE your workers in their salary, tips are not expected.  Do you tip the person who changes your oil?  Do you tip the cable guy who came to install your Wi-Fi?  Do you tip the Amazon delivery driver?  No.  Because they are already being paid by the company...just my two cents.  (Riggs)

Talk to you in the morning!