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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.
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