Trump’s tip tax proposal: A flawed fix for a broken system – Allison Schrager
Tipping is widely disliked and has become more pervasive over time. Donald Trump's proposal to make tipped income tax-free would exacerbate the problem by reducing tax revenue and promoting a flawed system. Tipping distorts pay distribution in the service industry, burdens customers, and creates income instability for servers. A policy change is needed to phase out tipping or normalize tip pooling, rather than incentivizing it through tax breaks.
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By Allison Schrager
Tipping is terrible. Almost no one likes it. And as it has become more ubiquitous, it has also become even more unpopular.
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