this post was submitted on 17 Aug 2024
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The biggest difference between Trump and Harris's tax free tips is that Harris wants to limit it to service and hospitality workers.
I'm still not sure this is a good idea. Workers should simply be paid a reaeonable wage and not have to rely on customers t pay more then advertized.
Kamala also wants to remove subminimum wage for that reason. But removing tax on tips does reduce the burden on tipped workers to keep records of every tip they collect.
IMO we should get rid of subminimum wage, raise the federal minimum to $15/hr, and let workers keep their tips if people still feel like tipping; it works great in Washington State.
I dont now what records they have to keep? At the end of the day, whatever they have more then they should have according to what they started with and what they served are tips. If payed with card, the records are there anyway.
Well your taxes are usually automatically deducted from your salary, but taxes on tips have to be accounted for by the worker. If you're only paid $2.13 an hour it's easy for tips to make up the bulk of your pay, leading to a big debt on tax day if you haven't property accounted for how much to withhold yourself.