The Washington Post on Nostr: Kamala Harris eyes guardrails on plan to eliminate taxes on tips ========== Vice ...
Kamala Harris eyes guardrails on plan to eliminate taxes on tips
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Vice President Kamala Harris is considering a $75,000 income cap for her proposal to eliminate taxes on tips, which would only apply to service and hospitality workers. Tipped earnings would still be subject to payroll taxes. Discussions reflect a desire to refine a policy criticized when first proposed by Donald Trump in June. Harris endorsed the idea on August 10, 2024, amid bipartisan support, including endorsements from Republican Senators Ted Cruz, Steve Daines, Kevin Cramer, and Rick Scott, as well as Democratic Senators Jacky Rosen and Catherine Cortez Masto. The proposal could cost up to $200 billion over the next decade, but capping the income limit could reduce this to $100 billion. Economists argue that the change would not significantly benefit low-income Americans, as only 3% of U.S. workers earn tips, and 37% of tipped workers already do not pay federal income tax. Harris aims to tie the tax cut to an increase in the national tipped minimum wage, currently at $2.13 per hour. The proposal may complicate eligibility for other anti-poverty tax credits, as exempting tips could push some workers into higher income brackets.
#KamalaHarris #Taxes #Tips #EconomicPolicy #Bipartisan #DonaldTrump #MinimumWage #IncomeCap #FederalIncomeTax #Antipoverty
https://www.washingtonpost.com/business/2024/08/20/kamala-harris-taxes-on-tips/
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Vice President Kamala Harris is considering a $75,000 income cap for her proposal to eliminate taxes on tips, which would only apply to service and hospitality workers. Tipped earnings would still be subject to payroll taxes. Discussions reflect a desire to refine a policy criticized when first proposed by Donald Trump in June. Harris endorsed the idea on August 10, 2024, amid bipartisan support, including endorsements from Republican Senators Ted Cruz, Steve Daines, Kevin Cramer, and Rick Scott, as well as Democratic Senators Jacky Rosen and Catherine Cortez Masto. The proposal could cost up to $200 billion over the next decade, but capping the income limit could reduce this to $100 billion. Economists argue that the change would not significantly benefit low-income Americans, as only 3% of U.S. workers earn tips, and 37% of tipped workers already do not pay federal income tax. Harris aims to tie the tax cut to an increase in the national tipped minimum wage, currently at $2.13 per hour. The proposal may complicate eligibility for other anti-poverty tax credits, as exempting tips could push some workers into higher income brackets.
#KamalaHarris #Taxes #Tips #EconomicPolicy #Bipartisan #DonaldTrump #MinimumWage #IncomeCap #FederalIncomeTax #Antipoverty
https://www.washingtonpost.com/business/2024/08/20/kamala-harris-taxes-on-tips/