Reported about 2 months ago
Both former President Donald Trump and Vice President Kamala Harris support eliminating taxes on tips for service workers. While this could increase workers' take-home pay by removing federal, state, Social Security, and Medicare taxes on tips, it also poses risks. Without paying into Social Security and Medicare, workers may find it harder to qualify for loans and will need to self-fund their retirement. Expert Karla Dennis emphasizes the importance of considering long-term financial implications when discussing such tax policy changes.
Source: YAHOO