Originally, yes. But Trump campaigned on eliminating taxes on tips, and that was part of the BBB.
Workers are now allowed to deduct up to $25k of their tipped income from their federal income tax, though they still have to pay into Social Security and Medicare from their tipped wages.
Of course, in aggregate, it would still be far better were Congress to eliminate the distinction between tipped minimum wage and regular minimum wage, then raise the overall minimum wage, and we as a culture did away with tips entirely.
Originally, yes. But Trump campaigned on eliminating taxes on tips, and that was part of the BBB.
Workers are now allowed to deduct up to $25k of their tipped income from their federal income tax, though they still have to pay into Social Security and Medicare from their tipped wages.
Of course, in aggregate, it would still be far better were Congress to eliminate the distinction between tipped minimum wage and regular minimum wage, then raise the overall minimum wage, and we as a culture did away with tips entirely.