Gov. Glenn Youngkin visited McLean’s Restaurant in Scott’s Addition on Monday where he donned an apron and served breakfast after announcing a budget proposal that would eliminate state income taxes on cash and electronic tips. If passed, Virginia would become the first state in the nation to implement such a policy.

“Virginians are over-taxed,” Youngkin said. “And I know all of you know that, and I know the men and women who are working here today taking care of this breakfast understand that as well.”

It is estimated that the state would lose about $70 million in annual tax revenue, but nearly 250,000 Virginians working in tipped professions, including bartenders, hairstylists and concierges, would benefit from the proposal, according to a press release from the governor’s office.

 Gov. Glenn Youngkin serves coffee to patrons at McLean’s Restaurant Dec. 16 after announcing a “no-tax-on-tips” budget proposal.
 Photo by Charlotte Rene Woods/Virginia Mercury  

Stephanie Franklin, a server who has worked in various restaurants for 14 years and currently works at a popular brunch chain, says the flexibility of her job allows her to spend time with loved ones while supporting them financially. Eliminating taxes on tips, she adds, would mean she might not need to work as much to make ends meet.

“If I don’t have to work a full six to seven days to get what I could get in four to five like a normal person who works a job, that is a huge financial gain for us in the service industry,” she said.

Currently, the minimum wage for tipped workers in Virginia is $2.13 an hour. It doesn’t make sense to tax tips because they are earned, not guaranteed, according to Franklin.

“I just feel like we deserve whatever that customer leaves and feels like we deserve.” Franklin said. “If I give you superior service and you say ‘I feel like you deserved $15,’ the $15 should be mine because I’m the one on my feet. I’m the one that had to deal with the customer and whatever went right or wrong with their experience.”

Youngkin expressed hope that this will be a bipartisan initiative, and said he will work with the General Assembly to pass this. Lt. Gov. Winsome Earle-Sears added that “this should be a no-brainer for the General Assembly,” while speaking to the crowd in McLean’s restaurant.

Delegate Mike Jones, D-77, also supports the proposal, he said in a phone interview.

“The tax relief is a step in the right direction, but there is still work to be done to ensure that all workers in the Commonwealth make a living wage,” Jones said. “I want to challenge the governor and the Republican party to continue fighting for families by raising the minimum wage; it can’t just stop at tips,” Jones said.