this post was submitted on 13 Nov 2024
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what's hexbear consensus on Trump's policy of not-taxing tipping? I think wait staff might see material gains in the first few weeks, but I think it'll be bad for almost everyone long term as it will encourage business owners to add more unnecessary forms of tipping, price obfuscations, etc.. Any negative effects I'm predicting will probably be nothing compared to (both recent and upcoming) rise of gambling, crypto, tariffs, etc..
Tipping is anti-labor and discriminatory. Excluding tips as taxable income is an attempt to save it from growing anti-tip sentiment.
State and local taxes will still apply anyway
If it's cash and never sees a bank, it was likely going to be tax free anyways.
I'd bet that this is mostly, if anywhere, going to affect the apps and touch screen ordering systems that allow you to "add a tip". Nothing better than giving the tips to the business owner who then gets to decide how much of the nightly tips get into the pockets of the workers.