NAGS HEAD, N.C. — Congress has passed President Donald Trump’s Big Beautiful Bill, which includes a tax break on tips. Outer Banks restaurants weighed in on what it will mean for their workers.
“I'll be able to do a little bit more with my money. I might stash a little bit more away for having to pay for college or groceries, and just like helping out around with my parents and whatnot," said Owen Reibel, a server at Dirty Dick's Crab House in Nags Head.
Owen Reibel was born and raised in the Outer Banks and has worked in the restaurant industry for the last five years. For many service industry workers who rely on tips, when tax season comes along, they usually owe money.
“You just got to hope you have enough saved up, and it's just challenging with having to save for rent and groceries and gas," said Reibel.
"You get a little extra money in your pocket at the end of the year is better than having to pay money out to the IRS. It's always exciting when you see that Turbo Tax number in the green instead of you owe," said Josh Lundy, morning kitchen manager at Hurricane Mo's in Kitty Hawk.
Congress passed President Donald Trump’s Big Beautiful Bill on Friday. Included in it is legislation that there will be no tax on tip payments, meaning it will eliminate what the workers owe in federal income tax each year.
Dirty Dick’s Crab House general manager Rob Barker shared his thoughts on it.
“The first thing that pops in my mind is the average mom who is a waitress who now is going to have a little bit more money in her pocket," said Barker.
Barker and Hurricane Mo’s, owner and general manager, Arthur Richer, feels it will be a boost for their employees.
"It means a lot to my employees, clearly. I care a lot about them. So, I mean, if they're happier, I'm happier," said Richer.
“I started thinking about the fact that the average tipped employee, especially in our viewing community, probably makes 35 to $75,000 a year, and that is the group of people that needs to spend their money to keep going. So, every dollar that stays in someone's pocket in that tax bracket is actually a dollar that they need to spend somewhere for their family, somewhere for their kids," said Barker.
Barker feels in the Outer Banks, especially, this could go a long way for every person in a tip-based job.
“If they can keep $400 in their pocket from not paying taxes, that alleviates some of the burden. Somebody who's trying to save for a house, now is keeping $100 in their pocket, $150 in their pocket over the course of the year, that might be a down payment to finally get them in a house," Barker said. "So I think that this really has a farther reach than we've yet to see, and I'm really excited about this for a lot of people that work hard and I feel are undervalued and unappreciated."
We know these federal tax breaks will go into effect starting in January and run until at least 2028.
