This week Florida Congressman Byron Donalds introduced legislation to ensure a 100% above-the-line deduction at filing for tipped wages. If approved this change could impact many workers on Fort Myers Beach.
The Bill, if it becomes law, would amend the IRS code of 1986 to eliminate the application of the income tax on cash tips through a deduction allowed to all individual taxpayers.
Donalds said for far-too-long, Washington’s focus has been on how much of your paycheck politicians and unelected bureaucrats will take to fund their destructive agendas. “Americans deserve to take home more of what they have earned, especially given the self-inflicted economic hardships created by the Biden administration. That is why Texas Senator Ted Cruz and I have introduced the ‘No Tax on Tips Act.’ Our bill allows taxpayers to claim a 100% above-the-line deduction at filing for tipped wages. Policymakers must put the needs and financial interests of hardworking Americans first.”
Donalds says that by implementing a 100% above-the-line-deduction for tipped wages, employees will pocket more of what they earn, be able to show their actual income to potential lenders and continue to accrue federal benefits without unintentionally qualifying for low-income safety net programs. At the same time, the current IRS voluntary tip reporting compliance programs and business tax benefits remain unchanged for employers.
Read the 3-page Bill HERE.
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