"No taxes on tips!" was the rallying cry and campaign promise that many believe enabled Donald Trump to win Nevada in 2024. It was so popular that his opponent Kamala Harris copied the pledge. Senators and congressmen are now rushing the bandwagon to enact "no taxes on tips."
The devil is in the details of this idea. If one select group of wage-earners can legally avoid taxes, then everyone will want to join that group. Already, restaurants have realized the inherent unfairness that the front-of-the-house employees would avoid taxes, but not the back-of-the-house employees. Tipping is usually for the public-facing service providers, such as waiters, but the invisible dishwashers and janitors whose wages are not considered "tips" would not be able to access this new tax-free benefit.
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