![Both presidential candidates want to eliminate taxes on tips, but economists are raising the red flag.](https://san.com/wp-content/uploads/2024/08/CLEAN-TIP-JAR_Getty-Images_featuredImage_Tue-Aug-13-2024.jpg?w=1920)
Trump, Harris agree on eliminating tip taxes; economists raise red flag
By Lauren Taylor (Anchor), Shea Taylor (Producer), Ian Kennedy (Lead Video Editor)
Democratic presidential nominee Vice President Kamala Harris and Republican candidate former President Donald Trump agree on at least one thing: they both want to eliminate taxes on tips. While that sounds great to many workers who benefit from tips, financial experts say it could actually end up costing billions.
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See who else is reporting on this story and which side of the political spectrum they lean. To read other sources, click on the plus signs below. Learn more about this dataBias Distribution
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Why Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Associated Press NewsWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on abc NewsBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on CNNWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Coast ReporterWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Sask TodayBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on Koco News5Ending Taxes on Tips Is Controversial Even Though Trump and Harris Both Want It
Click to see story on Time MagazineWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on NBC WashingtonCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on WCSHWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Bowen Island Undercurrent‘No tax on tips’ becomes campaign issue for Trump and Harris
Click to see story on BBC NewsBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on KIFIBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on KRDOBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on KVIAWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Winnipeg Free PressKamala Harris’ tax proposal backed by majority of Republicans
Click to see story on NewsweekWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on WPLGWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on News 4 JAXWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Chicago TribuneWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on WKMGWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Click on DetroitBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KCRA 3Both Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WCVBBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WLWTBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WMURBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WLKYBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WESHBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KETVBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WDSUBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WYFFBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WTAEBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KCCIBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KMBCKamala Harris, like Donald Trump, wants no taxes on tips. Critics say the idea is ‘very silly’ — no matter who proposes it.
Click to see story on MarketWatchBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WISNBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WBAL-TVBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WPTZBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WMTWBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WVTMBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WAPTWhy Trump’s and Harris’ proposals to stop taxing tips would be hard to do
Click to see story on FortuneHarris and Trump say “no tax” on tips
Click to see story on WGN 9Both Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KOATBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on KWWLTrump and Harris both want to end federal taxes on tips, but what would that mean for workers?
Click to see story on Fox8Why Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on The ColumbianCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on WFAA 8abcBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WPBFBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WGALBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WXIIWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on WANE-TVBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KSBWCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on WKYCBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on WAAY-TVCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on WBIRBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WJCLCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on Krem2 NewsBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KHBSHarris mirrors Trump proposal to end federal taxes on tips
Click to see story on Scripps NewsWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Sun-SentinelCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on KTVBEconomist raises alarm on Harris, Trump proposals to eliminate tax on tips
Click to see story on abc12/WJRTWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact – The Nevada Independent
Click to see story on Nevada IndependentWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Shaw LocalRight
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Why Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Airdrie City ViewWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on My Mother LodeWhy Donald Trump’s and Kamala Harris’ proposals to end taxes on workers’ tips would be difficult to enact
Click to see story on The Economic Times“Tip” as the theme of the US election. Rivals Match — Tax-Free Tip
Click to see story on seznamzpravy.czBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on MOR-TVWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Moose Jaw TodayWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Temple Daily TelegramUnited States, Trump wants to tax tips. But even Biden and Harris agree (and they’re taking land away from him)
Click to see story on ilmessaggero.itAccording to the public media outlet Marketplace, 2.5% of the U.S. labor force earns money from tips, but 1 in 3 make an income so low, it’s already not taxed.
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Here’s where the issue arises. Let’s say two people work at a restaurant, but Person A is a hostess and Person B is a server. Both make about $30,000 a year, however, for Person B, a chunk of that comes from tips, while it doesn’t for Person A.
That means come tax time, Person A is stuck paying more in taxes than Person B even though they make the same amount of money.
The federal minimum wage for tipped workers is $2.13 per hour, but workers must make at least the federal hourly minimum wage of $7.25 once tips are included or their employers must cover the difference. Many states and municipalities have higher minimum wages and minimum tipped wages than the federal standard, while some states have eliminated lower minimum wages for tipped workers altogether.
The Tax Foundation, a research think tank, estimates eliminating taxes on tips could actually end up costing more than $100 billion in tax revenue over the span of 10 years.
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And depending on how the tax cut is structured, economists on both sides of the aisle warn that the loss could pile onto federal deficit, negatively impact Social Security and Medicare, and open a loophole for high-end earners like financiers to recategorize their income to shield it from taxes.
DEMOCRATIC PRESIDENTIAL NOMINEE VICE PRESIDENT KAMALA HARRIS AND REPUBLICAN CANDIDATE FORMER PRESIDENT DONALD TRUMP AGREE ON AT LEAST ONE THING – THEY BOTH WANT TO ELIMINATE TAXES ON TIPS.
AND WHILE THAT SOUNDS GREAT TO MANY WORKERS WHO BENEFIT FROM TIPS… FINANCIAL EXPERTS SAY IT COULD ACTUALLY END UP COSTING BILLIONS.
ACCORDING TO THE PUBLIC MEDIA OUTLET MARKETPLACE – 2 AND A HALF PERCENT OF THE U-S LABOR FORCE EARNS MONEY FROM TIPS… BUT ALREADY 1 IN 3 MAKE AN INCOME SO LOW, IT’S ALREADY *NOT* TAXED.
SO, WHAT’S THE ISSUE?
HERE’S SOME PERSPECTIVE: LET’S SAY YOU AND I BOTH WORK AT A RESTAURANT, BUT I’M A HOSTESS AND YOU’RE A SERVER.
WE BOTH MAKE ABOUT 30-THOUSAND DOLLARS A YEAR – HOWEVER – FOR YOU, A CHUNK OF THAT COMES FROM TIPS, WHILE IT DOESN’T FOR ME.
THAT MEANS COME TAX TIME, I’M STUCK PAYING MORE IN TAXES THAN YOU EVEN THOUGH WE MAKE THE SAME AMOUNT OF MONEY.
THE FEDERAL MINIMUM WAGE FOR TIPPED WORKERS IS 2 DOLLARS AND 13 CENTS PER HOUR – *BUT* THEY MUST MAKE AT LEAST THE FEDERAL HOURLY MINIMUM WAGE OF $7.25 ONCE TIPS ARE INCLUDED… OR THEIR EMPLOYERS HAVE TO COVER THE DIFFERENCE.
MANY STATES AND MUNICIPALITIES HAVE HIGHER MINIMUM WAGES AND MINIMUM TIPPED WAGES THAN THE FEDERAL STANDARD – WHILE SOME STATES HAVE ELIMINATED LOWER MINIMUM WAGES FOR TIPPED WORKERS ALTOGETHER.
THE TAX FOUNDATION – A RESEARCH THINK TANK – ESTIMATES ELIMINATING TAXES ON TIPS COULD ACTUALLY END UP COSTING MORE THAN 100 *BILLION* IN TAX REVENUE OVER THE SPAN OF 10 YEARS.
AND DEPENDING ON HOW THE TAX CUT IS STRUCTURED – ECONOMISTS ON BOTH SIDES OF THE AISLE WARN THAT COULD PILE ONTO FEDERAL DEFICIT… NEGATIVELY IMPACT SOCIAL SECURITY AND MEDICARE… AND OPEN A LOOPHOLE FOR HIGH-END EARNERS LIKE FINANCIERS TO RECATEGORIZE THEIR INCOME TO SHIELD IT FROM TAXES.
Media Landscape
See who else is reporting on this story and which side of the political spectrum they lean. To read other sources, click on the plus signs below. Learn more about this dataBias Distribution
Left
Why Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Associated Press NewsWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on abc NewsBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on CNNWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Coast ReporterWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Sask TodayBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on Koco News5Ending Taxes on Tips Is Controversial Even Though Trump and Harris Both Want It
Click to see story on Time MagazineWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on NBC WashingtonCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on WCSHWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Bowen Island Undercurrent‘No tax on tips’ becomes campaign issue for Trump and Harris
Click to see story on BBC NewsBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on KIFIBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on KRDOBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on KVIAWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Winnipeg Free PressKamala Harris’ tax proposal backed by majority of Republicans
Click to see story on NewsweekWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on WPLGWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on News 4 JAXWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Chicago TribuneWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on WKMGWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Click on DetroitBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KCRA 3Both Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WCVBBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WLWTBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WMURBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WLKYBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WESHBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KETVBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WDSUBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WYFFBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WTAEBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KCCIBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KMBCKamala Harris, like Donald Trump, wants no taxes on tips. Critics say the idea is ‘very silly’ — no matter who proposes it.
Click to see story on MarketWatchBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WISNBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WBAL-TVBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WPTZBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WMTWBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WVTMBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WAPTWhy Trump’s and Harris’ proposals to stop taxing tips would be hard to do
Click to see story on FortuneHarris and Trump say “no tax” on tips
Click to see story on WGN 9Both Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KOATBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on KWWLTrump and Harris both want to end federal taxes on tips, but what would that mean for workers?
Click to see story on Fox8Why Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on The ColumbianCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on WFAA 8abcBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WPBFBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WGALBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WXIIWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on WANE-TVBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KSBWCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on WKYCBoth Trump and Harris want to eliminate taxes on tips. This is how it could affect workers
Click to see story on WAAY-TVCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on WBIRBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on WJCLCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on Krem2 NewsBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on KHBSHarris mirrors Trump proposal to end federal taxes on tips
Click to see story on Scripps NewsWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Sun-SentinelCould Trump or Harris really end federal taxes on tips for food service workers?
Click to see story on KTVBEconomist raises alarm on Harris, Trump proposals to eliminate tax on tips
Click to see story on abc12/WJRTWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact – The Nevada Independent
Click to see story on Nevada IndependentWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Shaw LocalRight
Untracked Bias
Why Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Airdrie City ViewWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on My Mother LodeWhy Donald Trump’s and Kamala Harris’ proposals to end taxes on workers’ tips would be difficult to enact
Click to see story on The Economic Times“Tip” as the theme of the US election. Rivals Match — Tax-Free Tip
Click to see story on seznamzpravy.czBoth Trump and Harris want to eliminate taxes on tips; how it could affect workers
Click to see story on MOR-TVWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Moose Jaw TodayWhy Trump’s and Harris’ proposals to end federal taxes on tips would be difficult to enact
Click to see story on Temple Daily TelegramUnited States, Trump wants to tax tips. But even Biden and Harris agree (and they’re taking land away from him)
Click to see story on ilmessaggero.itUnbiased news.
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