ST. JOHNS, Mich. — I'm your St. Johns neighborhood reporter Claire Bacarella at The Heist Grille, where local restaurant workers are reacting to a tax break that could put more money in their pockets.
- President Trump's Big Beautiful Bill will eliminate federal income taxes on tips.
- The tax break could mean up to an extra $3,000 for tipped workers earning between $10,000 and $50,000 annually.
- Restaurant managers believe the change could make tipped jobs more appealing to job seekers.
WATCH: St. Johns servers respond to potential tip tax elimination
Liz Johnson has been working as a server at The Heist Grille in St. Johns since October. Soon her paychecks could be a little bigger, but it's not because of a pay raise.
"So, I have four children. So, that extra money would be pretty handy. So it would either go toward them or to my house, bills," Johnson said.
The extra money comes from a new tax break in President Trump's Big Beautiful Bill. The bill passed a vote by the House of Representatives Thursday.
One key provision in the bill is the elimination of federal income taxes on tips. For a single worker who has a taxable income of between about $10,000 and $50,000, this tax break could mean up to an extra $3,000 in their pocket.
Heist Grill manager Ashlynn Martin tells me she thinks the tax break could make tipped jobs more appealing to those on the job hunt.
"I think it'll attract, yeah. More money in their pocket," Martin said.
The no tax on tips provision will expire in 2028. The final bill is expected to be sent to President Trump's desk by Friday, meeting his July 4th deadline.
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