Wisconsin bill would make tips tax free

 

WISCONSIN (CBS 58) -- Tens of thousands of people work in the service industry in Wisconsin and many are given cash tips. 

Now, a lawmaker is proposing a bill so state taxes wouldn't need to be paid on those tips. 

Under the bill, cash tips received by an employee in service industries like tourism, restaurants, and taverns across the state would be exempt from state income tax. 

"It's extra money in their pocket. Extra money they are able to use to support themselves and their families and the local economy," Sen. Andre Jacque (R) - De Pere said.  

Senator Jacque says his bill has bipartisan support. Tip money would still need to be reported on federal tax returns.