The discussion of lessening the tax burden on hair stylists, barbers, and nail technicians in the state is one being proposed by groups like the James Madison Institute (JMI) out of Tallahassee.
A recent analysis compiled by JMI’s Doug Wheeler shows that Florida is home to the nation’s highest percentage of small businesses and 64% of companies in the state have less than five employees, many of whom rely on customer tips to support their families.
Around 50% by women and nearly a third by minorities, employ more than 31,000 people. A portion of those companies include hair stylists and barbers. Wheeler says these groups have been left behind when it comes to being taxed fairly.
In Wheeler’s findings, US Congress decided to put in place, over 30 years ago, a policy that would provide a reimbursement tax credit to restaurants and bars, which cancels out the taxes they must pay on their employees’ tips.
Now, U.S. Congress is looking at proposals that would ensure that the tax system allows Florida’s small businesses to operate just as freely and effectively as its workers. JMI says if these measures are adopted, it would correct current tax law oversight that has hurt Florida more than most other states.
“If this is good for some companies, what about barbers, salons, and spas?”, Wheeler said. “These businesses bear the same financial burdens as restaurants and rely on tips just as much as food establishments. Don’t they deserve the same tax benefits that Florida’s restaurants and bars currently have?”
Florida ranks number two of the most moved-to state in the nation. Wheeler says it’s because of federal barriers like the government’s unequal tip taxation system that prevent some Americans from having the cash required to move their businesses to Florida.
“By putting more money in the pockets of both employees and employers, policymakers have the opportunity to create stronger local economies, increase overall employment, and present more avenues for upward economic mobility throughout the state,” Wheeler said.
Wheeler and JMI are somewhat hopeful that the current congressional proposals will address this taxation issue from the small business side.
Author
