As the presidential campaign intensifies, both former President Donald Trump and Vice President Kamala Harris are vying for the support of service and hospitality workers by proposing to eliminate taxes on tips. However, experts suggest that this move may not benefit many tipped workers, as a significant portion of them do not earn enough to owe federal income taxes.
Both Trump and Harris have put forth this idea without releasing detailed proposals, which would require approval from Congress. Key considerations include the extent to which tipped income would be tax-free, measures to prevent fraud and abuse, and whether both federal income and payroll taxes would be waived.
