No tax on tips is bad for workers

[edhopper]

https://www.epi.org/blog/no-tax-on-tips-will-harm-more-workers-than-it-helps-proposals-in-congress-and-now-20-states-could-encourage-harmful-employer-practices-and-lead-to-tip-requests-in-virtually-every-co/

https://taxpolicycenter.org/taxvox/heres-tip-no-taxes-tips-may-be-good-politics-bad-policy

https://prospect.org/labor/2025-05-23-no-tax-on-tips-flashy-idea-benefits-few/

[marble falls]

1. Under reporting tips has a bad effect later when a tipped employee applies for SS. I've had employers under report my ..

... tips, I had a collection of $0 checks fro two different employers.

[Justice Brandeis]

2. More tip-flation in virtually every sector of the economy

and more awkward encounters at checkout stands when customers inevitably refuse to tip for every little thing.

[Skittles]

6. yup

you want to support workers but you wonder why you are expected to make up for the wages their employers should be paying

[Ms. Toad]

3. Agreed.

I made many of those points when Dems started jumping on board.

One not mentioned prominently enough in these articles is the reduction in social security income arising out of underreporting wages. If it's not subject to tax, you retirement income won't be based on it. (One sentence in the tax policy article mentioned it.)

[Silent Type]

4. So, are we saying Democrats should come out in opposition to deduction for tips and overtime? That'll go over well.

[edhopper]

5. That's why they put it in

but it will hurt the workers in the long run.

[PoindexterOglethorpe]

7. Many years ago a friend, whose income was very

dependent on tips, complained that her SS check was so low. Too bad. Report the tips and pay taxes, or don't report but invest the sum that would have been taxes. Just don't complain that you cheated on SS when this happens.