On the campaign trail, then candidate Donald Trump, proposed No Tax on Tips to put more money back in the pockets of regular working Americans.
This week the legislation passed 100-0 on the floor of the US Senate by unanimous consent. The House is likely to pass the bill and President Trump will sign it.
Senator Ted Cruz (R-TX) introduced the No Tax On Tips bill that would exempt cash tips and card-charged gratuities from federal income tax via a 100% deduction when you file your taxes. The bill includes guardrails to ensure only traditionally tipped employees will benefit from No Tax on Tips.
Franco Volpe, co-owner and chef of La Volpe Ristorante on Montawk Highway in Center Moriches said, “I think this will be fantastic for all these young people that work in an industry that requires hard work and attention. I think it will benefit our staff members a lot.”
“I know they've been talking about us for a while. It's a great thing because servers are paid below minimum wage because of the tips,” Volpe said. “Having this deduction will not just help our servers, but also help us maybe recruit more workers. It is very difficult to find workers these days, so I think this tax break will be a positive thing for us and for them.”
"Tuesday, I went with Senator Rosen (D-NV) to the floor to secure Senate passage of the bill. This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck," said Cruz. “This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck.”
Ashlee Lucarello, bartender at Sea Cove Italian restaurant on Main St. in Center Moriches said, “Everybody is really happy about it and looking forward to making some more money. It will be better all around for people to sustain a healthy and happy lifestyle. Take home pay will definitely be better with tips not being taxed.
“We're actually understaffed because it’s hard to find people. I do think No Tax on Tips will give people more motivation to work in this industry, added” Lucarello.
“There is no reason to tax us on our service; we are already taxed on our wages,” said Amy Weinhauer, a server at the Country Cottage in Center Moriches. “Enough is enough.”
"No Tax on Tips was one of President Trump’s key promises to the American people, which he unveiled in my state of Nevada — and I am not afraid to embrace a good idea, wherever it comes from," Rosen said of the bill originally drafted by Cruz.