Yes, I've been saying some of the same things on the X platform. Untaxing tips will give employers an incentive to steer what they pay their employee towards tips instead of salaries, which are taxed. Essentially, this means total income will "balance out" but will also become more uncertain, since tips vary by customer, whereas salaries are fixed. Will this mean better service from tipped employees where every customer is a payer? Maybe, but it may also lead to more stigmatizing certain kinds of customers who are less likely to be good tippers, perhaps poor people like those being tipped, or other groups yet to be imagined. It will lead to less accountability from the legal employer and more power form the tippers, who are unaccountable...unless Congress wants tippers to start keeping receipts from those they tipped to match to the tipped peoples' tax returns, which would create another logistical nightmare.
Infinite money glitch
Yes, I've been saying some of the same things on the X platform. Untaxing tips will give employers an incentive to steer what they pay their employee towards tips instead of salaries, which are taxed. Essentially, this means total income will "balance out" but will also become more uncertain, since tips vary by customer, whereas salaries are fixed. Will this mean better service from tipped employees where every customer is a payer? Maybe, but it may also lead to more stigmatizing certain kinds of customers who are less likely to be good tippers, perhaps poor people like those being tipped, or other groups yet to be imagined. It will lead to less accountability from the legal employer and more power form the tippers, who are unaccountable...unless Congress wants tippers to start keeping receipts from those they tipped to match to the tipped peoples' tax returns, which would create another logistical nightmare.