Gov. Glenn Youngkin is pushing a budget amendment to exempt service tips from state income tax, echoing the 2024 campaign gimmicks from Donald Trump and Kamala Harris.
A press release from the governor’s office on Monday was light on specifics, which is a nice way of saying, there were no specifics.
The release did tout that the proposal from the governor would “return an estimated $70 million annually to the pockets of hardworking Virginians.”
The devil will be in the details.
Trump, you may remember, floated his no-tax-on-tips proposal first, back in June, with an open-ended promise to support the idea if he were to be elected in November.
Harris followed up with her own proposal that had evidence of actual thought put to it, including a proviso to ensure that high-wage earners like hedge-fund managers and lawyers wouldn’t be able to restructure their compensation as “tips” to try to take advantage.
Forgive those of us who don’t trust Trump – 34 felony convictions, a lifetime of bilking contractors and denying his employees overtime, the mountain of civil judgments – from assuming that his goal with no-tax-on-tips was to give other rich guys a way around having to pay their taxes.
Thus, forgive me for wondering about the ulterior motives here of a guy like Youngkin, net worth: $440 million.
“By removing tips from taxable income, it will directly increase the take-home pay of hundreds of thousands of Virginians and give them more buying power, which in turn will improve financial stability, stimulate local economies, and honor the value of their hard work,” Youngkin said.
The press release tells us that the Virginia Department of Taxation and the Virginia Employment Commission estimate that more than 250,000 Virginians within the food service industry, personal service industry (such as hair stylists), and hospitality industry (such as bellhops and concierges) could benefit from the proposed tax relief.
It also tells us that “workers who receive tips from their employment in other industries would also benefit.”
As I said, the devil here will be in the details.
Video: Glenn Youngkin goes all out on ‘no tax on tips’
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Chris Graham
