Tip culture is already out of control. This can only make it worse.
“the Senate passed the No Tax on Tips Act 100–0, which “creates a federal income tax deduction of up to $25,000 a year for certain types of cash tips for eligible employees,” perThe Washington Post. (“Cash tips” include tips given not just in cash but also via credit and debit cards.) This applies to employees earning $160,000 or less annually.”
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“If you actually wanted to help the household budgets of working-class people, the best thing you could do is refrain from imposing 10 percent across-the-board tariffs (and more for goods imported from China). It’s not clear to me that no taxes on tips, though President Donald Trump touted it repeatedly from the campaign trail, will do all that much, or that there was a ton of accurate tip-reporting happening in the first place.”
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“creates an opportunity for people to try to categorize their normal income as tips, and how much they can now get away with remains to be seen.”