The no tax on tips provision of Donald Trump’s budget cannot be the pro-labor gift that the president has made it out to be while the rest of the bill slashes health care and other social programs for lower-income people. Representative Alexandria Ocasio-Cortez shed some light as to why that’s the case.
If you’re just below the $150k limit (whatever that provision means) you’d get less than a 1% savings on your tax bill. And if you already earn less than $30k annually you probably weren’t paying taxes anyway. Not to mention cash tips are pretty much “under the table”.
I can’t tell you how many 50-75k a year people are head over heels about no overtime tax. They have no idea how little money it is but now they are just like rich people, paying less taxes. 🤡