cover of episode Breaking Down "No Tax On Tips"

Breaking Down "No Tax On Tips"

2024/9/2
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The NPR Politics Podcast

Chapters

This chapter introduces the proposal of eliminating taxes on tips and the opposing views from economists and tax experts. It highlights concerns about unfairness to other workers, the potential for gaming the system, and the existing fact that many tipped workers already don't pay federal income taxes due to low earnings.
  • Economists and tax experts oppose eliminating taxes on tips.
  • Concerns exist regarding unfairness, system gaming, and the fact that many tipped workers already don't pay federal income tax.
  • Potential issues include defining eligible occupations and preventing high earners from exploiting the system.

Shownotes Transcript

By now, you've probably heard a lot from both presidential nominees about getting rid of taxes on tips. The idea may sound good on first go, but it has its detractors, namely economists and tax experts. Their fears include unfairness and people gaming the system. Our friends at The Indicator from Planet Money) look at how to put in place guardrails for a policy that many economists believe is likely to go off the rails.Learn more about sponsor message choices: podcastchoices.com/adchoices)NPR Privacy Policy)