Now that Vice President Kamala Harris has voiced her copy of former President Donald Trump’s “no tax on tips” proposal, tax-cut talk colors much of the media attention.
A common refrain asks whence the money for the deficit will come if Congress passes rules that allow for these changes. While this question does not quiet the thousands in support of the idea at rallies, others in the policy sphere push back for various reasons. Apart from budget considerations, opponents doubt whether cutting taxes on tips would help rather than hurt service workers’ wages and whether the idea appears fair alongside other low, non-tipped incomes.
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