{"id":14820,"date":"2024-09-24T13:17:14","date_gmt":"2024-09-24T13:17:14","guid":{"rendered":"https:\/\/lonecandle.com\/?p=14820"},"modified":"2024-09-24T13:17:15","modified_gmt":"2024-09-24T13:17:15","slug":"carving-out-a-tax-cut-just-for-tips-doesnt-make-more-sense-when-kamala-harris-does-it","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=14820","title":{"rendered":"Carving Out a Tax Cut Just for Tips Doesn’t Make More Sense When Kamala Harris Does It"},"content":{"rendered":"\n

“exempting tips from income taxes would increase the deficit, create some weird economic incentives<\/a>, and unfairly cut taxes for a small subset of workers while not doing much to help the majority of Americans or grow the economy.”<\/p>\n\n\n\n

…<\/p>\n\n\n\n

“Alex Muresianu, a senior policy analyst at The Tax Foundation, spells out<\/a> in detail why that’s the case. He compares two hypothetical low-income service sector workers: a cashier and a waitress, both of whom earn $34,000 annually. Under the current tax code, both have the same baseline tax liability (roughly $2,000) even though about half of the waitress’s earnings are via tips.<\/p>\n\n\n\n

If those tips are exempted from income taxes, the cashier still owes that $2,000. The waitress, meanwhile, owes just $600.<\/p>\n\n\n\n

Harris should have to explain why she thinks it’s fair to ask some low-income workers to pay tax bills that will be two or three times higher than other workers who earn the same amount\u2014because that’s what she is proposing here.”<\/p>\n\n\n\n

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Carving Out a Tax Cut Just for Tips Doesn’t Make More Sense When Kamala Harris Does It<\/a><\/blockquote>