Trump and Harris Unite on Tax-Free Tips Policy
Both presidential candidates endorse eliminating federal taxes on tips, but experts question its effectiveness.
- Trump and Harris both propose eliminating federal taxes on tips to appeal to service workers.
- Economists argue the policy would benefit few workers and could lead to significant revenue losses.
- Harris pairs her proposal with a federal minimum wage increase, unlike Trump's standalone policy.
- Critics warn of potential tax avoidance and reclassification of income as tips.
- The policy's popularity among voters contrasts with expert skepticism about its economic impact.