Exempting tips from taxes could hurt employees, critics say – msn/WaPost
“No tax on tips” will harm more workers than it helps – EPI
Senate and House negotiators: Please consider these substitutions or additions to the “No tax on tips” legislation:
- Eliminate entirely the $2.13/hour special minimum wage for tipped workers. Besides helping many more workers, this would relieve employers of a massive amount of paperwork. Current law requires them to keep track of tips and increase wages if tips fail to bring total earnings to the regular minimum wage of $7.25/hour.
- Reduce tax rates in the lowest two federal tax brackets for all workers making low-wages on an annual basis.
- If some form of tax exemption for tips is kept in the bill, limit it to the lowest-earning workers with the tax relief declining as total pay increases.