A new report from Forward Analytics found that proposals to eliminate income taxes on tips and overtime pay would let hardworking Wisconsinites keep an extra $2.7 billion over the next decade, instead of handing it to the state in taxes.
Republican gubernatorial nominee Tom Tiffany has made eliminating taxes on tips and overtime earnings a centerpiece of his campaign, arguing that workers who earn through tips, like servers, bartenders, delivery drivers, and those picking up overtime shifts, should keep the full fruits of their labor.
“Wisconsinites work hard for every dollar they earn,” Tiffany said in a recent statement. “Whether it’s tips earned through exceptional service or overtime hours worked beyond the standard week, that money belongs in the pockets of hardworking families, not government coffers.”
Whether it’s tips earned through exceptional service or overtime hours worked beyond the standard week, that money belongs in the pockets of hardworking families, not government coffers.
The proposal would allow Wisconsinites to deduct up to $25,000 in cash and charged tips from their state income taxes, providing immediate relief to those in the service industry and other workers supplementing their income through overtime.
Tiffany’s proposal focuses on letting workers make their own spending and saving decisions rather than directing those dollars through the state budget. By letting people keep more of what they earn, the proposal supports personal financial independence and strengthens local economies as workers spend and invest their additional income in their communities.
