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Lawmakers push to eliminate taxes on service industry tips


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Lawmakers push to eliminate taxes on service industry tips
In a recent government meeting, discussions centered around the taxation of tips for service and hospitality workers, a topic that has garnered bipartisan support. Prince Chikata, a bartender at Busboys and Poets in Washington, D.C., highlighted that 80 to 90% of his income comes from tips, expressing optimism about a proposal to eliminate taxes on these earnings.

This proposal, initially suggested by former President Trump in June, aims to relieve service workers from the burden of tip taxation. Vice President Kamala Harris echoed this sentiment in August, committing to support working families by advocating for the elimination of taxes on tips and raising the minimum wage.

On Capitol Hill, legislation titled \"Don't Tax Tips\" was introduced this summer, reflecting a growing consensus among lawmakers on the importance of supporting service industry workers. Chikata noted that the average tip at a sit-down restaurant typically ranges from 15% or less, with families being among the most generous tippers.

As discussions continue, the potential impact of these proposals on the livelihoods of service workers remains a focal point for policymakers.

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