Senator Ricketts’ Weekly Column: Working Families Tax Cuts are Relief for Workers

We’re in the middle of tax season.  This tax season, I’ve been traveling our state with good news.  Nebraskans are likely to see more money in their pockets this year.  Two weeks ago, I shared this with ag leaders at a roundtable in Hastings.  Last week, I heard from Nebraska restaurant owners, franchisees, and a hotel manager at a luncheon in Omaha.  They all told me how the Working Families Tax Cuts will benefit their workers and help their small businesses.  We’re giving hard-working Nebraskans back more of their hard-earned money.  We’re strengthening our local businesses.

Nebraska is the best place in the world to work, live, and raise a family.  Thanks to the Working Families Tax Cuts, it’s going to get even better.  I was home in Omaha last Friday and hosted an event at a local pizzeria.  It focused on provisions from the Working Families Tax Cuts that will benefit families and restaurant workers.  We are strengthening the Good Life with no tax on tips and no tax on overtime.  We’re providing tax cuts for families and incentives for businesses to invest in their workers.  I was happy to share this good news with the people who will benefit from it most.

The Working Families Tax Cuts removes taxes on tips, up to $25,000 per year.  Tips are earned—not given.  These savings will bring meaningful relief for hard-working servers, bartenders, and workers who depend on gratuities at that establishment and countless others across the state.

The Working Families Tax Cuts also eliminates taxes on overtime pay, up to $12,500.  This supports all of the jobs that keep Nebraskans and our country safe and running.  Some jobs require workers to give a little more and require extra hours.  One restaurant manager told me of a waitress whose wages were incorrectly reported.  Her W-2 reported some overtime pay as regular pay.  When this was corrected, she received an extra $1,500 in her tax returns because of the no tax on overtime provision.  That’s more money to buy groceries and gas.  That’s a monthly house payment.  That’s meaningful.

The Working Families Tax Cuts also benefits restaurants and small businesses.  It encourages them to invest in their workers.  Thanks to full, immediate expensing on capital equipment, years of deferred maintenance is now affordable for mom-and-pop businesses.  A restaurant owner described how he was able to afford deferred maintenance because of the Working Families Tax Cuts.  These are necessary expenses and he no longer had to put off.  He just couldn’t afford it before.  Now it was affordable, thanks to the Working Families Tax Cuts.

Best of all, these businesses know that their workers keep more of their income.  Bureaucratic government will take less from hard-working Nebraskans, keeping more money in our communities.  Across the nation, we have seen an individual income tax reduction of over $125 billion.

This tax season will be better for hard-working Nebraskans.  Restaurants and their workers will be better off.   All Nebraskans will be strengthened.

The Working Families Tax Cuts have delivered for Nebraska.  I’ll keep fighting to protect the Good Life.

My team and I are here to serve you.  Contact us anytime by phone at 202-224-4224.  You can also view my website at http://www.ricketts.senate.gov/contact.