Why Trump and Harris’s ‘no tax on tips’ plans may not help tipped workers – msn/WaPost
“The change wouldn’t help most low-income Americans. Tipped workers — including hairdressers, bartenders and restaurant servers — represent less than 3 out of every 100 workers in America, according to an analysis by Yale’s Budget Lab. Even among low-wage workers in the bottom quarter of wage earners, just 5 percent earn tips. Tipped workers are far more likely to be teenagers and young adults under 25.”
Trump and Harris both want no taxes on tips. Here’s why policy experts don’t like the idea – CNBC
Why Trump and Harris both say ‘no tax on tips’ – BBC
“The financial impact is unclear: Some of the proposals in Congress focus exclusively on income tax; others would exempt tips from both income and payroll tax. The candidates themselves have been vague.”
As noted before, exempting payroll taxes that support Social Security would result in lower benefits…It would be fairer to raise the minimum wage – which neither party has prioritized. See:
Senate minimum wage bills make bipartisan compromise possible – Karl Polzer