In policy proposals posted to her website, Harris called for an increase in the overall minimum wage and for the end of the subminimum wage for tipped workers.
I dislike the elimination of taxes on tips because it opens a new loophole for rich assholes but I’m 100% behind eliminating sub-minimum wages.
It does feel like we should be encouraging the end of tipping, not asking it to stick around forever.
Removing the minimum wage exception to tips does help with that. Part of the reason why tips are inventived
Plus taxes on tips as they exist already has quite a number of assumptions that tipping will always exist. For instance, assumptions of a minimum 8% tip rate for reporting. Which will be withheld from pay from at least that assumption (which you can get back if you earn less by filling)
Harris’s proposal specifically includes an income limit to prevent people like hedge fund managers and lawyers from structuring their pay as “tips”. Trump’s version predictability does not.
It sucks for more than just that though. There’s 0 reason for tipped workers to pay less in taxes over workers making the same just by virtue of being tipped.
I would say the reliability of pay is a good reason. Tipped workers can’t count on a consistent amount of money. A bad month or even a bad week can mean rent doesn’t get paid.
That can happen to anyone if they’re fired.
And that’s why we have workers compensation. The government subsidizes wages in times of hardship. Cutting taxes on tips would allow those workers to weather periodic lulls better.
And to clarify, she is also calling for an overall increased minimum wage at the same time
Cue countless restaurant owners whining and trying to seriously complain that they can’t “compete” without underpaying their employees.
There’s a long tail of servers/bartenders who are against this as well because they work at expensive establishments and make bank off tips. Like high double digits an hour.
If the push to convert tips into wages ever becomes serious, conservative media will do its best to platform and promote these servers who stand to lose income off it. We gotta think of a rhetoric/messaging strategy to counter that.
They’ll still get tips, they’ll just get a higher base pay as well. Why would they be against that?
Propaganda and disinformation. It worked for Door Dash.
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How about we do a maximum wage instead?
