Lawmakers from Kansas gathered at the Celtic Fox pub to celebrate legislation that would exempt tipped earnings of service and hospitality workers from income taxation, following a federal model promoted by President Trump. Kansas Senate President Ty Masterson, state Sen. Caryn Tyson, and U.S. Sen. Roger Marshall were all in attendance to discuss the benefits of this tax exemption, with Masterson emphasizing that tips shouldn’t be considered ordinary income.
Tyson highlighted the potential reduction in state tax revenue, estimating it could range from $4 million to $10 million annually. Marshall, a Trump ally, viewed the federal tipped-income bill as a way to make Kansas more affordable and contribute to domestic prosperity and security. The federal exemption on tips was projected to cost between $150 billion to $250 billion over 10 years, with concerns that it could lead to reclassification of income to avoid taxes.
While a pending bill in the U.S. Senate proposed a $25,000 deduction cap and occupational limits for the exemption, the U.S. House version suggested an annual limit of $20,000 for the federal tipped-income exclusion. Overall, lawmakers were focused on simplifying the tax code and supporting hard-working taxpayers across the country.
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Photo credit kansasreflector.com