Virginia Gov. Youngkin calls for end to taxes on tips ahead of legislative session

Virginia Gov. Glenn Youngkin, a Republican, is pushing to eliminate taxes on tips ahead of the commonwealth’s next legislative session.

This proposal would return an estimated $70 million annually to the pockets of Virginia workers, Youngkin’s office said Monday in a press release.

An end to taxes on tips could help more than 250,000 people in Virginia who work within the food service industry, the personal service industry such as hairstylists, the hospitality industry and others who receive tips through their employment in other industries.

“We have delivered over $5 billion in tax relief to date, and we remain committed to lowering the cost of living for hardworking Virginians. It’s their money, not the government’s,” Youngkin said in the release.

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“By removing tips from taxable income, it will directly increase the take-home pay of hundreds of thousands of Virginians and give them more buying power, which in turn will improve financial stability, stimulate local economies, and honor the value of their hard work,” he continued.

Virginia workers who earn tips would be able to claim a deduction on their state tax return if the income is included in their federal adjusted gross income, the release said.

“This is way to keep more money in their pocket as opposed to giving it to a government. We’re already running surpluses and therefore, no taxes on tips is going to become the manta in Virginia,” Youngkin said Monday during an appearance on Fox News’ “America’s Newsroom.”

The governor’s proposal echoes President-elect Trump’s call during his campaign to end taxes on tips. Vice President Harris also expressed support for eliminating taxes on tips during her presidential campaign.

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The proposal comes ahead of the start of Virginia’s legislative session next month. It would require approval from the commonwealth’s General Assembly, and it is unclear if Democrats, who control both chambers, would support Youngkin’s proposal.

Next year, Virginia’s gubernatorial race will be held, where Lt. Gov. Winsome Earle-Sears, a Republican, is expected to face off against U.S. Rep. Abigail Spanberger, a Democrat.

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