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Illinois proposes new bill to remove state tax on tips


Illinois State Rep. Dave Vella has introduced House Bill 792 (HB0792), which aims to eliminate state tax on earned tips. Vella believes this could be a positive step in supporting workers in the service industry. He argues that taxes should be cut for working people rather than for corporations or the wealthy. The bill would create an Illinois income tax deduction for the total amount of tips earned by a worker, helping them keep more of their earnings. Vella hopes this change will incentivize people to work in the service industry and provide financial relief to those who rely on tips to make ends meet. The bill has gained attention from both political parties, with Vella emphasizing the importance of bipartisan support for effective legislation. Area bartender Margo Cortright supports the bill, noting that it will help offset the fact that many in the service industry are paid below minimum wage. The next step for HB0792 is to be reviewed by a committee before potentially becoming law in Illinois.

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