Not taxing tips is a terrible idea

Not taxing tips is a terrible idea
https://finance.yahoo.com/news/not-taxing-tips-is-a-terrible-idea-202040780.html

Summary

Certainly! Here are the key takeaways from the article titled "Could the Next President Eliminate Taxes on Tips?":[^1^][1]

• Background: Both presidential candidates, Donald Trump and Kamala Harris, have expressed interest in exempting tips from income tax. Nevada, a swing state, employs many hospitality workers who rely on tips[^2^][2].
• Challenges: Drafting a sensible tax rule to exempt tips is difficult[^3^][3]. Separating tips from wages and preventing abuse would be complex.
• Potential Impact: Eliminating tip taxes could reduce federal revenue by up to $25 billion per year, but it remains uncertain whether such a policy will be implemented[^4^][4].

Remember that this is a summary, and you can refer to the full article for more details! 📰