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Why ‘No Taxes on Tips’ Won’t Help Most Workers

While this policy shift may have wide appeal—most people aren’t going to say no to a tax cut—it would not translate into real benefits for workers struggling to make ends meet.

September 5, 2024 by CEPR Leave a Comment

By Sylvia Allegretto

The Progressive

See article on original site.

With the race for the White House heating up, a curious policy idea appeared seemingly out of nowhere: ending federal taxes on tips. While this policy shift may have wide appeal—most people aren’t going to say no to a tax cut—it would not translate into real benefits for workers struggling to make ends meet. In fact, it could do harm, and it may even deliver a new tax perk to the rich.

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Previously Published on cepr.net with Creative Commons License

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About CEPR

The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people’s lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.

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