- No tax on tips: Neighborhood servers react to President-elect Trump's idea.
- Watch the video above to learn about President-elect Trump's idea.
(The following is a transcription of the full broadcast story)
I came to Eaton Place because one of President-elect Donald Trump's campaign promises was no tax on tips. Servers are telling me; they're hoping that becomes a reality.
"For the working people, not having to claim tips will be just massive," Eaton Place server Mike Sanchez said.
Meet Mike Sanchez, who has been working at the Eaton Place for two decades as a cook and now a server. He believes all servers should be able to keep every penny of every tip.
"We work really hard for our money, we already get taxed on our paychecks, our paychecks are nothing," Eaton Place server Mike Sanchez said.
Other Eaton County servers like 19-year-old Katy Mckenzie also supports the idea President-elect Trump talked about during his campaign of no federal tax on tips. Vice President Kamala Harris also supported a similar change during her campaign.
"I 100 percent agree, with not paying any taxes on my tips of course anyone would want to do that," Eaton County Server Katy Mckenzie said.
But if the idea does end up becoming a reality, a change in Michigan could reduce its impact on servers like Sanchez. Statewide, the minimum wage for neighbors who earn tips is set to slowly go up beginning next year.
We've heard fears from restaurant owners and staff that if they have to raise food prices to keep up with that higher minimum wage, customers might end up tipping less.
"I'm also wondering like why now, why change it now, if you're a server you're expecting to get tipped, if you don't want to get tips to get another job," Eaton County Server Katy Mckenzie said
Even so, Sanchez hopes the no tax on tips idea, ends up happening for neighbors like him.
"We got to do things like that, we got to have no taxes on tips, no taxes on overtime, especially as long as inflation remains as it is," Eaton Place server Mike Sanchez said.
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