Virginia governor calls for an end to taxes on tips in state budget

The proposal will need approval from the state's General Assembly which is led by Democrats.

Published: December 16, 2024 5:39pm

Virginia's Republican Gov. Glenn Youngkin on Monday called for an end to taxes on tips in his upcoming state budget, echoing calls from President-elect Donald Trump on the campaign trail.

Trump first broached the subject during a campaign stop in Nevada over the summer, in an apparent appeal to Las Vegas' huge service industry. The pitch was later picked up by Vice President Kamala Harris, who Trump called a "copycat," and has since been touted by politicians on both sides of the aisle. 

Youngkin claimed "no tax on tips" will become a "mantra" in Virginia, according to The Hill, and that as many as 250,000 people working in Virginia’s food and hospitality industry are set to benefit from the proposal.

“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 a press release. “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."

The proposal will need approval from the state's General Assembly which is led by Democrats. It also  comes ahead of the beginning of the state’s legislative session next month.

Misty Severi is an evening news reporter for Just the News. You can follow her on X for more coverage.

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