Why Trump and Harris’s ‘no tax on tips’ plans may not help tipped workers
==========
Former President Donald Trump and Vice President Kamala Harris both support eliminating federal taxes on tips, but economists say the proposal is unlikely to have much practical impact. Tipped workers represent less than 3% of the American workforce, and many low-income workers already don't pay federal income tax. The proposal could cost the government at least $10 billion to $15 billion per year in lost tax revenue. Some economists argue that the policy might actually hurt workers by disqualifying them from certain tax credits and benefits. However, Trump's advisers believe that eliminating taxes on tips would be burdensome to report and would stimulate the economy through increased spending. Harris's campaign would limit the exemption for tips to certain industries and workers below a certain income threshold. The proposal could potentially cost the government $100 billion to $150 billion over a decade. If tips aren't taxed, employers and workers might have an incentive to shift more compensation from regular wages to tips, potentially costing the government even more. The proposal has received mixed responses from service industry workers, with some expressing support for the idea while others believe policymakers should focus on larger issues like increasing wages.
#DonaldTrump #KamalaHarris #TaxPolicy #TippedWorkers #IncomeTax #Economists
https://www.washingtonpost.com/business/2024/08/13/trump-harris-tax-free-tips/
The Washington Post /
npub1nw…97m8h
2024-08-13 23:51:21
Author Public Key
npub1nwad78hejfewj63p264uf2sxh0a5az753pw7auscrlupefjtr27sp97m8hPublished at
2024-08-13 23:51:21Event JSON
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"content": "Why Trump and Harris’s ‘no tax on tips’ plans may not help tipped workers\n==========\n\nFormer President Donald Trump and Vice President Kamala Harris both support eliminating federal taxes on tips, but economists say the proposal is unlikely to have much practical impact. Tipped workers represent less than 3% of the American workforce, and many low-income workers already don't pay federal income tax. The proposal could cost the government at least $10 billion to $15 billion per year in lost tax revenue. Some economists argue that the policy might actually hurt workers by disqualifying them from certain tax credits and benefits. However, Trump's advisers believe that eliminating taxes on tips would be burdensome to report and would stimulate the economy through increased spending. Harris's campaign would limit the exemption for tips to certain industries and workers below a certain income threshold. The proposal could potentially cost the government $100 billion to $150 billion over a decade. If tips aren't taxed, employers and workers might have an incentive to shift more compensation from regular wages to tips, potentially costing the government even more. The proposal has received mixed responses from service industry workers, with some expressing support for the idea while others believe policymakers should focus on larger issues like increasing wages.\n\n#DonaldTrump #KamalaHarris #TaxPolicy #TippedWorkers #IncomeTax #Economists\n\nhttps://www.washingtonpost.com/business/2024/08/13/trump-harris-tax-free-tips/",
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