Virginia Gov. Glenn Youngkin (R-Va.) called for an end to taxes on tips in the state on Monday, by including language in the upcoming state budget to eliminate the practice.
“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,” he continued.
Youngkin told Fox News in an interview that “no taxes on tips is going to become the mantra in Virginia.”
Youngkin’s proposal echoes President-elect Trump’s call during the campaign to end taxes on tips. Vice President Kamala Harris also endorsed eliminating no taxes on tips. It’s unclear whether Virginia Democrats will support Youngkin’s proposal.
The governor said that as many as 250,000 people working in Virginia’s food and hospitality industry could see relief from the initiative.
The proposal, which requires approval from the state’s General Assembly, comes ahead of the state’s legislative session next month. It also comes ahead of next year’s governor’s race in the state, in which Lt. Gov. Winsome Earle-Sears (R) looks likely to face off against Rep. Abigail Spanberger (D-Va.).
