[wakawaka28]

I can't read this article because of the paywall. Are they saying that taxable tips are subject to payroll taxes (which employers pay out of pocket)? That would actually benefit both employers and employees in some sense.

Some tipped workers, like bartenders, can make more in tips than a junior software engineer lol. Less taxes definitely helps their cause.

If you are concerned with indirect effects, there's quite a few pros and cons that you could extrapolate from the no tax on tips policy. These arguments are far less compelling in general.

[itake]

https://archive.is/20250731232051/https://www.newyorker.com/...

> Some tipped workers, like bartenders, can make more in tips than a junior software engineer lol. Less taxes definitely helps their cause.

neat, but you can only deduct up to $25k and the benefits phase out if you earn more than $150k (single filers).

[reissbaker]

I think most bartenders would appreciate an extra $25k.

[itake]

I am sure they would! but that isn't what the law says. Its a $25k DEDUCTION.

If someone earned $125k salary + $25k in tips. Their taxable income would decrease by about $6k (or $500/mo, 4% overall).

[reissbaker]

Okay. I think they would also like an extra $6k.

[itake]

The Democrat's point isn't that workers shouldn't get tax cuts, but that he gave a $6,000 tax break to top earners, and gave even larger cuts to the wealthy overall.

[shazbotter]

Deducting 25k does not mean taking home an extra 25k. It means, probably, somewhere around $1-3k, depending on their tax bracket.

[noboostforyou]

That's...not how it works, like, at all. It's a tax credit, not actual money that you pocket additionally from your existing paycheck. It also only lasts until 2028.

[graton]

> I can't read this article because of the paywall

I just turned on reader mode in Firefox and then refreshed the page and got the article. I'm surprised how often it works. It often doesn't but sometimes it does.