Governor Glenn Youngkin of Virginia has proposed a new budget plan that would make tips from service jobs exempt from state income tax. This move is expected to put about $70 million back into the pockets of over 250,000 Virginians.
Helen Kassa, a diner manager, supports the idea, saying it would help many people, especially in areas like Northern Virginia, where the cost of living is high. She believes it would help families avoid having to work multiple jobs to make ends meet.
Customer Michael Medhin also agrees, stating that servers should be able to keep all their tips and not be taxed on them.
However, the proposal needs approval from Virginia’s General Assembly, which is controlled by Democrats. Some lawmakers are opposed to it, calling it a poorly thought-out gimmick. Senate Majority Leader Scott Surovell raised concerns that the plan could result in some employees earning more than teachers or police officers, and could lead to tax fraud.
He suggested that if the Governor wants to help workers, he should support raising the minimum wage to $15 an hour instead. Additionally, the Democrats pointed out that no other state has adopted this kind of tax exemption for tips.