A growing debate over how tipped income is taxed in Illinois has resurfaced as State Lawmaker Regan Deering introduced legislation aiming to align Illinois law with the federal “no tax on tips” policy. The move comes after state officials said Illinois would not adopt the federal exemption, citing concerns that exempting gratuities could create an unequal tax burden.
Deering, a vocal proponent of tax relief, emphasized that the state’s real issue is spending, not revenue.
House Bill 4519, filed by Deering, would exempt tips from state income taxes up to $25,000, mirroring federal rules. According to Deering, the measure would provide direct relief to tipped employees, many of whom earn a lower base wage.
Deering framed the policy as a step toward economic growth and retaining talent within the state.
Story from Illinois Radio Network
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