- Part of the budget deal reached by Michigan's state legislature includes eliminating state income tax on tips and overtime.
- Both restaurant employees and owners say it's a win for the industry.
"I think it's a great win for everyone who works in this industry," says Matt Prater, Owner of Prates Place in Grass Lake.
Excitement in the restaurant industry in my neighborhood about the possibility of no state tax on tips and overtime...and the excitement is not limited to servers.
WATCH THE VIDEO FOR DETAILS:
"It's definitely going to make this industry more appealing," says Prater. He calls the deal a win for everyone, including restaurant owners:
"There's quite a bit of hours every week just totaling up what we have to submit to the government so that they can tax the employees. So all of that would go away for us. We'll get some time back."
And, as they say, time is money.
"There's even a tax on us for doing so, so we'll get that back as well."
"We're going to be so happy. All of us are going to be so happy," says Shauna Williams, who tends bar at the Shamrock on Jackson's East side. Williams says the tax break will make a big difference:
"It's a huge part of my income."
"For these people that really depend on tips for their livelihood, to have that full amount — we think that's a huge win," says Prater.
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