SAN DIEGO (KGTV) — Zachary Gignac has been a bartender at Number One Fifth Avenue for about two years, and he is one of many who are going be directly affected by President Trump's spending bill.
"I do think it's going to benefit us in this specific role," said Gignac. "Frontline workers that are working in bars and restaurants that have that direct interaction with customers, there is a benefit there. The caution piece that I have with it is that it's a temporary solution. It's not necessarily long-term, that longer perspective is something important that we have to keep in mind."
The Senate and House passed Trump's spending tax bill last week, and the president signed the bill on July 4. Trump has touted the theme of "no tax on tips," but the bill won't eliminate taxes on tips entirely.
Once the bill goes into effect, the first $25,000 in tips would be free from income taxes.
Workers who make tips will still get 7.65% combined payroll taxes, which fund Social Security and Medicare.
Brian Jinings, the owner of Number One Fifth Avenue, said he's looking out for his workers, hoping they'll get something out of the bill.
"We're going to evaluate our systems and if we can change our systems to benefit our employees, we'll certainly do that," said Jinings. "But at the end of the day, this is something that is being delivered at a high political level; we'll make sure that it benefits our employees as much as possible."
As for Gignac, he's uncertain with how the details will pan out, but hopes the bill will benefit his finances.
"Things are still, relatively, again with cost of living, relatively tight but not necessarily something where I'm able to kind of flex as much," said Gignac. "If anything, it'll be something I put more money aside for retirement, put more money aside for my future, and hopefully use that cushion for something productive later on."