Trump and Harris Push Controversial 'No Tax on Tips' Proposal

Experts argue the policy benefits businesses more than workers, raising concerns about wage suppression and budget deficits.

Both presidential candidates have endorsed eliminating federal taxes on tips, a policy initially proposed by Trump.
Critics argue the proposal primarily aids employers by reducing their payroll burden, potentially suppressing wages.
The policy could cost the federal budget up to $250 billion over a decade, impacting Social Security and Medicare funds.
Most tipped workers earn too little to benefit significantly from the tax cut, with many already not paying federal income taxes.
Experts suggest alternative policies, like raising the minimum wage, would more effectively support low-income workers.