‘I don’t care if it’s perceived as a Trump idea’: Loves Park Democrat proposes cutting state taxes on tips

March 20, 2025|By Kevin Haas|In Rock River Current, News, 815 News, Local, Rockford, Trending, Loves Park
State Rep. Dave Vella announces an $800,000 state grant on Friday, Jan. 7, 2021, to support improvements at Shorewood Park in Loves Park. This week Vella has proposed ending state income tax on tips. (Photo by Kevin Haas/Rock River Current)
By Kevin Haas
Rock River Current
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ROCKFORD — Workers in Illinois would no longer pay state income tax on tips under a proposal introduced this week by state Rep. Dave Vella.

The Democratic Party lawmaker from Loves Park has introduced a bill that would create an Illinois income tax deduction for the total amount of tips earned by a worker. He said that would effectively make state income tax no longer apply to tips.

The proposal is similar to something President Donald Trump has called for on the federal level, saying both on the campaign trail and again at the start of the year that he wanted to eliminate federal tax on tips. Former Vice President Kamala Harris had also considered excepting tips from income taxes, although not from payroll taxes.

“This is an idea that has gained attention from both sides of the aisle on the national level, and I think it makes a lot of sense to pursue here in Illinois,” Vella said Thursday in a statement. “Our tipped workforce has historically faced disadvantages, often seeing lower pay to begin with and greater instability with the economy. Let’s choose to prioritize and help our hardworking tipped employees keep more of what they rightfully earned.”

Roughly 4 million workers, or 2.5% of all employees, were tipped in 2023, according to an estimate from the Yale Budget Lab.

The minimum wage in Illinois is $15, and the minimum for tipped workers is $9.

“This is real money that’s going to have a real impact for families,” Vella said. “I don’t care if it’s perceived as a Trump idea – and there’s no question I’m adamantly opposed to a lot of his ideas – let’s pursue a good policy that puts more money in the pockets of our hard workers.”

Vella’s bill has been referred to the state House’s Revenue and Finance Committee.

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas