What is your basis for believing this? I haven’t seen it anywhere. Bonuses are distinct category of compensation (taxed higher than salary) and never have I seen them referred to as tips.
I know you’re not drawing this conclusion simply because Harris said “service and hospitality”. That is implied.
Cite your source or be exposed as a dishonest shill once again.
It was part of some of the original criticism of Trump's proposal. So much so that when speaking with CNBC, Harris officials took pains to point out that she was proposing legislation with an income limit and requirements. Those concerns were voiced by some critics after Trump's initial proposal...
CNBC also requested info from Team Trump on that issue. So far crickets...
"Banning taxes on tips would require new legislation and congressional approval, which a Harris campaign official later acknowledged.
"The campaign official said Harris would work with congressional lawmakers to construct a tax-free tip policy that has an income limit and has requirements to prevent “hedge fund managers and lawyers from structuring their compensation in ways to try to take advantage of the policy.”
"Those caveats respond to
several criticisms that have already emerged about banning taxes on tips."
Who do you think made the proposal that those criticisms were directed to? Santa Clause?
There are more criticisms levelled by experts having to do with revenue. My point was that on some level the two proposals are far from the same...The Harris campaign is at least aware of possible pitfalls...
"According to the nonpartisan
Committee for a Responsible Federal Budget, eliminating taxes on service tips would leave a hole in federal revenue over the next decade of between $150 billion and $250 billion.
Beyond the hit to government revenue, some economists argue that a tax-free tip policy would not effectively achieve its goal of easing the tax load on low-income Americans.
“The policy goal is to lower tax burden for low-income workers,” Ernie Tedeschi, economics director at Yale University’s
Budget Lab, told CNBC in June after Trump initially proposed the idea. “This is not a well-targeted, efficient way of doing that.”
He noted that only a small sliver of the low-income workforce are in tipped jobs and many of those workers skew younger or already pay no income tax because of their low earnings.
He also argued that the policy could create a hierarchy of low-income jobs where only some workers reap the benefits of tax-free income. And he said that tiered approach could compel employers to try to game the system like, for example, encouraging more tipping instead of raising wages.
“What would an economy where we incentivize tips so much look like?” Tedeschi said. “I have to imagine that smart tax lawyers and accountants thinking about this for just a little bit of time, would think up some really clever ways to take advantage.”
