The idea of eliminating taxes on tips is gaining bipartisan support. Tens of thousands of workers along the Gulf Coast rely on tips to earn a living.
While eliminating taxes on tips is popular, there is evidence suggesting it could hurt more than it helps people.
Service workers in Southwest Florida say their tips can vary depending on what they do and how busy the business they work for is.
The average service worker says they can earn $100 or more in tips a day so not paying taxes on that money sounds like a great idea to many workers including baristas, waiters or an ice cream server like Davian Olivo who stressed the more people his shop gets the more money he can make.
He realizes the tip jar can make or break.
“The best I got was probably around $130 one night,” Olivo said.
He likes the idea of his tips being tax-free.
Chris Blauvelt owns The Standard Restaurant in downtown Fort Myers and supports a federal bill that eliminates taxes on tips.
“I'm all for it. I think it helps the servers, bartenders and more money in their pocket,” Blauvelt said.
He said there are nights that some of his workers can earn between $300 and $600 on busy nights.
Patrons like Stu Sable said he often tips between 25 and 30% for service, and since he and his wife enjoy eating out, tips can add up.
He estimates dropping up to $500 in tips each month.
Digging deeper, the Economic Policy Institute, which studied the proposal, points out only 5.1% of U.S. employees are tipped workers.
Jessica Raynor points out that many of those workers are waitresses, waiters, hairstylists and nail technicians, whom she often tips.
The EPI warns if their taxable income goes down, they could lose their child tax credit when they file taxes at the end of the year, an unintended consequence that could have an impact on their tax returns.
Finally, the report says exempting tipped workers is unfair to other low-wage earners like cashiers or fast-food workers. It says high-end servers would likely benefit most.
The bill is currently before the House and Senate in Washington. It would need to be signed into law by President Donald Trump who has indicated he would support it.