MILWAUKEE — Wisconsin Gov. Tony Evers announced a proposal Monday that would eliminate state income taxes on cash tips and overtime pay, mirroring a federal tax law that was part of the Big Beautiful Bill signed into law last July.
Lawmakers still have the final say on whether the plan moves forward.
At Milwaukee's 3rd Street Market Hall, workers say the relief would make a real difference. The venue is home to nearly two dozen vendors, with restaurants and bars employing dozens of workers who rely on tips and extra shifts to make ends meet.
Allante Mayon-Denson, a manager at Goodland Greens inside the market, said the financial pressure is constant.
Watch: Milwaukee food service workers react to Evers tip and overtime tax proposal
"Every dime count. We're always living check-to-check. So, we need every penny like," Mayon-Denson said.
Mayon-Denson said eliminating state taxes on tips and overtime would directly benefit workers in his community.
"We already struggling in my community, so not having to pay extra for taxes, it would help out a lot," Mayon-Denson said.
He described service industry workers as people who push through difficult conditions every day.
"Handworkers. They go through a lot and still get up every day and work hard," Mayon-Denson said.
He said he personally feels the burden when paying state taxes on overtime wages.
"If we working over time that because we need it. That's more reason they should help us with giving us no taxes on our overtime and tips," Mayon-Denson said.
Gareth Pyper, who works at 3rd Street Market Hall and has spent his entire career in the service industry, said the federal tax change already made a noticeable impact.
"The federal return for me this year was really, really good. I worked almost the entire year as a tipped employee, so I got the biggest return I have gotten so far," Pyper said.
Pyper said a similar break on his state return would be just as meaningful.
"If I got that on my state return, that would be hugely beneficial for me," Pyper said.
Mayon-Denson echoed that sentiment, pointing to the broader cost-of-living pressures facing workers.
"We need extra money already. The price of living is already high so I think it would be great for us," Mayon-Denson said.
This story was reported on-air by Megan Lee and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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