State Senator Jason Plummer of Illinois’ 55th District has criticized Democrats in Springfield for maintaining the state tax on tips, while attributing federal Republicans with efforts to assist families.
“Look at Governor JB Pritzker and Illinois Democrats looking out for the ‘working families’ they so like to pretend they are helping,” said Robert Jason Plummer, State Senator for Illinois, according to Facebook. “There is no stronger anti-worker force at work than the Democratic Party of Illinois. At least Republicans at the federal level are helping American families.”
According to The Center Square, Illinois officials have decided not to align with the new federal “no tax on tips” deduction. This decision means that the state will continue collecting income tax on tips, even though these are exempt at the federal level. Republicans argue that this policy places Illinois at a competitive disadvantage and undermines relief intended for workers in hospitality and service sectors.
At the federal level, the No Tax on Tips provision allows qualifying employees in traditionally tipped occupations to deduct up to $25,000 in eligible tips annually from 2025 through 2028, subject to income limits. Analysts estimate that millions of workers could benefit from this deduction, with average tax savings reaching four figures for those who qualify. However, payroll or state and local taxes remain unchanged by this law, leaving states like Illinois to decide whether to offer similar relief.
Research on Illinois’ service economy underscores the importance of how tips are taxed. A statewide report indicates that over 198,000 tipped workers are employed daily across Illinois, earning a median annual income of approximately $16,733 including gratuities. These earnings often leave families operating on narrow margins amid rising inflation and housing costs. Advocates for aligning with the federal deduction suggest that allowing workers to retain more of their tips could help stabilize household budgets and support businesses reliant on experienced staff.
Plummer is a Republican businessman and Navy Reserve intelligence officer representing Illinois’ 55th District in the State Senate. He leads his family’s R.P. Lumber company and serves as an Assistant Republican Leader in Springfield. His roles include sitting on committees focused on financial institutions, labor, veterans, and public safety where he advocates for lower taxes and support for working families.
