Wisconsin bill proposed to exempt tips from state income tax

Wisconsin lawmakers are considering a new bill to exempt workers’ tips from their state income taxes.  The proposal is similar to a Trump plan to eliminate federal taxes on wages from tips, a pillar of the president’s campaign stump speech, which he reiterated during a Las Vegas rally over the weekend.  A draft of the bill is currently circulating in the state Capitol and could be formally introduced as early as February.  The bill would mirror a similar proposal introduced by lawmakers in 2019. That bill received a hearing in the state Assembly, but never made it out of committee. According to the bill authors, this would make Wisconsin the first state in the country to exempt tips from state income taxes.