JACKSONVILLE, Fla. — Florida lawmakers have officially introduced a new piece of legislation that they claim could significantly benefit millions of workers across the state. The No Tax on Tips Act seeks to eliminate federal taxes on tips earned by employees in various service industries.
Residents of Jacksonville have expressed strong support for the proposed bill, emphasizing its potential impact.
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Florence Gleason, a former waitress and single mother, shared her personal experience with Action News Jax.
had two children I had to raise on my own, and I had to supplement my income. My only choice for quick money was through my tips as a waitress,” Gleason said.
Gleason highlighted the importance of every dollar.
“It made me work harder because that was something I could swipe off the table if I needed to buy diapers or whatever my children needed that night. I had it because those were my dependents,” Gleason said.
The No Tax on Tips Act, introduced by Senator Rick Scott along with two Florida representatives on Thursday, would allow tipped employees—including restaurant servers, bartenders, and delivery drivers—to fully deduct their tips on tax returns, up to $25,000.
Sean Snaith, the Director of Economic Forecasting at the University of Central Florida, weighed in on the potential benefits of the bill.
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“It would certainly be beneficial to those households and workers in industries where tips make up a large portion of their income,” Snaith noted.
Snaith also pointed out that millions of workers have been advocating for this change since it was initially proposed by President-Elect Donald Trump last year.
However, Snaith cautioned about the significant fiscal implications of the legislation. Tax experts estimate that the bill could cost the government up to $250 billion over the next decade.
“The federal government is over $6 trillion in debt, and we’re running a deficit of about $1.8 trillion each year,” Snaith explained.
Despite the potential downsides, Gleason believes the benefits outweigh the costs for both service workers and customers.
“That shouldn’t be taxed at all. If I choose a waitress that I really like and I’m going to see her every week, I want to make sure she gets every bit of that,” Gleason said.
As the bill progresses, there is still uncertainty regarding when it might come up for a vote. If passed, the No Tax on Tips Act would apply to taxable years beginning in 2025.
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