Both presidential candidates have proposed a policy to end federal taxes on tips. We're digging into how this will impact Floridians, hearing from people across the Tampa Bay Region.
A political professor said it is rare that both candidates propose similar policies. The economics expert is hesitant about the move, but servers who rely on tips are all in.
“It is a reward for good service. It’s crucial to the income for our servers,” Phillip Ingram, owner of Trip's Diner in Tampa, said.
Ending federal taxes on tips is now a bipartisan running point. The idea first came into play in June when Former President Donald Trump announced it during a rally in Nevada.
Current Vice President Kamala Harris then echoed the idea.
Among Americans, opinions differ, but Tampa servers are all for it.
“It’s super frustrating because it’s like I did really good. I wish I could get that extra money in my pocket,” Alize Niebleck, a local server, said.
She said ending the tax on tips would be a big help for servers trying to put food on their family's table.
“That’s gas. That’s dinner for two days instead of one,” Niebleck said.
Some people are concerned that this move would increase the deficit while only helping a small portion of workers.
Michael Snipes, an economics instructor at the University of South Florida, said that is not the case for Florida because we have a large population of workers who rely on tips.
“It could have a localized impact because most of Florida's economy is in hospitality and tourism. So if we don’t tax tips in Florida, for example, that could have a much bigger impact simply because our economy is locked up in that industry,” Snipes said.
While it could help more people in Florida, the nonpartisan Committee for a Responsible Federal Budget estimates that it would reduce federal revenues by $150 billion to $250 billion over the next ten years.
The servers we spoke to said they hope the candidates will follow through on ending federal taxes on tips.
“I think any bit of relief that we can give to some of our people in this economy right now and how much things cost, I’m all for it," Ingram said.
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