Get all your news in one place.
100's of premium titles.
One app.
Start reading
Fortune
Fortune
Alicia Adamczyk

Who would benefit from 'no tax on tips' policies? Just 2.5% of workers

Man holding a tablet with tipping screen inside a restaurant (Credit: Sadi Maria)

Vice President Kamala Harris and former President Donald Trump don't see eye to eye on many policies, but both have called for nixing taxes on tips. Harris came out in support of the policy this week, while Trump has been floating the idea since June. In both cases, though, the details are foggy, as neither camp has explained to whom exactly the policy would apply or what specific taxes they are talking about eliminating.

One aspect of "no tips on taxes" that is confirmed: Economists generally consider the move a bad idea. Such a policy would apply to around just 2.5% of workers who are traditionally considered tipped workers. This figure is based on including the likes of servers and hairdressers, according to recent analysis from Yale University's Budget Lab, and would apply to around 4 million people.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.