Illinois, a state run by Democrats, rejects a federal no tax on tips, while Florida, a Republican run state is working to eliminate property taxes.
So, the state of Illinois needs the bartenders tips more than she does?
One state is working to make it more affordable, the other is not. Simple.
Sources tell me California was poised to join Illinois, Maine and the District of Columbia on rejecting the federal “No Tax on Tips” exemption, but Governor Gavin Newsom decided it would be hard to explain as a presidential candidate.
Newsom, motivated by his ego, is the only way California is getting this relief. But there’s still a chance the state assembly can reject it and start taxing service workers again. If that happens, Newsom has an out and will say he fought for the bartenders and servers, and portray himself as a moderate. But Newsom is by no means a moderate. And if he wasn’t running for president, you bet he would take that $3,000 dollars a year from a struggling service worker.
The federal “No Tax on Tips” was enacted as part of President Donald Trump’s “One Big Beautiful Bill Act.”
