Reported 2 months ago
The idea of exempting tips from income tax, recently advocated by presidential candidates like Donald Trump and Kamala Harris, raises significant concerns. Experts warn that such a policy could lead to loopholes, allowing high earners to classify their income as tips to avoid taxes, while primarily benefiting low-wage workers who rely on tips for income. This change could reduce federal revenue by billions, exacerbating existing fiscal challenges. Additionally, a substantial portion of tip income is already untaxed, indicating that potential benefits of this exemption may be overstated.
Source: YAHOO