Ga. lawmakers ponder plan not to tax workers’ tips
SAVANNAH, Ga. (WTOC) - The possibility of removing state income taxes on tips may be closer than we think. While some may hear that and get excited, others see the tension this could bring.
On the campaign trail, both Donald Trump and Kamala Harris pledged to end federal taxes on tips.
And in Georgia, some lawmakers are proposing doing the same at the state level.
Many service industries in Georgia pay $2 to $3 an hour, while the rest falls on tips.
$10,000 Mega Millions ticket sold in Georgia as jackpot grows
No one won the $541 million top Mega Millions prize, so the jackpot climbs to $579 million for Friday’s drawing. But someone in Georgia did win $10,000.
Days, months, and even years can go by without ever receiving an actual paycheck as most of that hourly rate goes right to payroll taxes often leaving income taxes under-reported.
According to a fiscal note addressed to state Rep. Mitchell Horner on Nov. 21, it could cost the state as much as $110 million in tax revenue each year.
Tara Gowen and Joshua Hernandez both have worked in tip-driven industries.
Gowen is a cosmetologist and Hernandez is a valet at a downtown Savannah Hotel.
What the Tech: Splurge-worthy gifts to wow anyone
If you’re looking for a truly impressive gift for the tech enthusiast in your life, forget about the usual gadgets. These cutting-edge innovations are sure to make a statement.
Gowen says that although she has reached a point in her career where tips are not her primary source of income it wasn’t too long ago when it was.
“I do feel as if we need to revisit how we are paid, especially in the service industry,” Gowen said. “I just don’t think we should be taxed on something that the clients give us for exceptional service, something we do over the top for them.”
Hernandez says that he is constantly trying to fill spots on his valet team because the money just isn’t there like it used to be.
There’s more freezing weather on the way: CSRA survival guide to the cold snap
The CSRA is in for its first really big cold snap of the season. Are you and your home prepared? Here's what you need to know.
“We see a lot of turnover because people aren’t able to tip as much, and people have families they have to provide for,” Hernandez says. “When you don’t get a decent hourly wage, you have to rely on these tips.”
Some critics of the idea say it would be unfair to those who get paid hourly and don’t rely on tips, although Gowen and Hernandez say a change is needed.
Lawmakers are expected to take a closer look at this when the legislative session begins next month.
Copyright 2024 WRDW/WAGT. All rights reserved.
