Members of the General Assembly are about to consider a proposal to do away with the tax on tips. Some lawmakers still have some reservations.
No tax on tips was not just a campaign promise in the presidential election. It's now a central plank in the strategy Senate Republicans have for the General Assembly session.
"Last year during the presidential race, there weren't many issues upon which the Democratic candidate and the Republican candidate agreed," says Republican Senator Mark Obenshain of Rockingham County. "But taxing tips was one of those issues."
But Senate Democrats are not sold on the idea.
"If we were to adopt a policy like that, it would result in a lot of people who currently earn a lot of their income by tips paying less taxes than other people who, I think, deserve similar treatment like teachers or police officers," Senate Majority Leader Scott Surovell says. "And I don't think that's really fair policy to preference that one group of workers relative to other people that sacrifice for us every day."
He says it would also open the door to shenanigans. For example, lawyers might start asking to be paid in tips to avoid paying taxes.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
